The SET-listed TPI Polene (TPIPL), Thailand's third-largest cement maker, will spend 10 billion baht between this year and 2016 to develop a new production line for cement and expand into renewable energy.
Half of total capital expenditure will go to the fourth cement production line, a project that has been postponed since the financial crisis in 1997, said chief executive Prachai Leophairatana.
The balance will be used to develop community waste into electricity, he said.
The fourth line will be developed at TPI Polene's existing plant in Saraburi province for 150 million euros (5.69 billion baht).
Capacity will be raised by 33% to 12 million tonnes a year by 2026, making it the largest cement plant under one roof.
The company earlier this week signed a memorandum of understanding to develop the project with Belgium firms P&V Project (Siemens), ALC Tournai, Atlas Copco and Magotteaux.
"TPI Polene is the first Thai cement maker to invest in capacity expansion since 1997," said Mr Prachai.
"That year, we had to scrap the project due to the financial crisis. We saw cement demand gradually recover over the past several year. Additional demand will come from from the government's train projects over the next seven years."
Export of cement from all producers is expected at 7 million tonnes this year, down from 10 million tonnes in 2012.
TPI Polene aims to trim its exports to 700,000 tonnes this year from last year's 1 million tonnes.
The firm is preparing to develop a 90-megawatt unit fuelled by community waste, pending an environmental review.
Some 60 MW from the new plant will be sold to the Electricity Generating Authority of Thailand, with the rest consumed in-house.
The company also plans to generate additional revenue from the new power plant via sales of carbon credits under the Clean Development Mechanism concept, said Mr Prachai.
For the last decade, TPI Polene has focused on clean and zero-waste cement production by using waste-heat recovery.
The firm has also diversified into organic fertiliser and fibre cement board.
Shares of TPIPL closed yesterday on the SET at 14.60 baht, down 70 satang, in trade worth 288 million baht.
