SET-listed Scan Inter Plc (SCN), the compressed natural gas kit distributor and service provider, recently set up two companies in Vietnam in partnership with a local firm to tap CNG demand there and in neighbouring countries.
"The economies of Cambodia, Laos, Myanmar and Vietnam have rapidly grown compared with others in the region," said Littee Kitpipit, SCN's executive administrative and marketing director.
The joint ventures will focus on liquefied petroleum gas and industrial compressed natural gas (ICNG) services.
The two ventures are Hanoi Liquefied Petroleum Gas Import-Export and Investment Joint Stock Co and Troung Thanh Electronic Gas Corporation, which will be the distributors of ICNG to the Vietnamese state-controlled Petro Vietnam.
"CNG can be used as a major fuel in the industrial sector as it has a lower cost over the long term," he said.
Mr Littee said SCN owns the technology, as the National Innovation Agency granted its CNG kits as an invention.
"We aim to be the leader for energy innovation in Asia," he said.
Mr Littee said manufacturers in Vietnam are interested in CNG because customers approve of it. Its new business there is expected to generate revenue of 100 million baht this year. In the future the company will ship other products for distribution in Vietnam.
He said SCN expects a 20% rise in revenue this year from 2.14 billion baht in 2014. Net profit last year was 228 million.
The company projected its profit margin will rise from 10% last year on improved production efficiency and economy of scale.
Mr Littee said the company plans to spend 200 million baht to buy five natural gas vehicle fuel stations this year, with three already purchased, then five more next year.
He said SCN is interested in resuming its solar farm business, but will wait for a new adder tariff rate from the government.
SCN shares closed on the SET at 10.10 baht, up 15 satang, in trade worth 78.4 million.