SET-listed PSP Specialties, a Thai lubricant manufacturer, has invested 409 million baht in Recycle Engineering, a chemical recycling firm, to expand into a sustainability business and fuel revenue growth.
The investment not only aims to diversify revenue sources, but also increases opportunities for the mutual growth of both companies, said Sint Krongphanich, chief executive of PSP Specialties.
Recycle Engineering started commercial operations in 1997, providing services for factories and laboratories, helping them convert unwanted chemicals into new chemical products.
PSP Specialties bought shares in Recycle Engineering from two companies: Reusable Development and Sus En Holding.
Once the transaction is completed, PSP Specialties will become the majority shareholder with 5.85 million shares, or a 65% stake in Recycle Engineering, said Mr Sint.
PSP Specialties expects the investment to help the company achieve a revenue growth target of 15% this year, which will also be driven by overseas market expansion and a plan to offer new products, notably coolants, to customers in data centres and cloud businesses.
The company earlier announced it was employing a mix of strategies to drive its revenue in 2025, including focusing more on exports and developing new products.
Overseas trade is increasingly important as the domestic market is maturing, according to deputy chief executive Sakesan Krongphanich.
Domestic demand for lubricants for internal combustion engines is slowing, which means it will be difficult to achieve double-digit growth this year.
In 2024, PSP Specialties exported 44 million litres of lube oil products, earning 2.47 billion baht, a year-on-year increase of 32%.
The amount represented 20% of the company's total lubricant production.
The company expects sales in overseas markets to keep growing this year, increasing the proportion of exported lubricants to 30.8% by 2028.
PSP Specialties aims to benefit from sales growth in several markets, especially Myanmar.
