UT to set up a joint venture company

Union Textile Industries Plc (UT) will sign a memorandum of understanding with Union Energy Co, British Gas Co and Electricity Generating Plc (EGCOMP) to establish a company to construct a power and steam generating plant as approved by its board at the meeting no.10/1995 yesterday. The plant will have a production capacity of 100 megawatts, of which 20 megawatts will be sold to Union Textile Industries Plc. The remaining 80 megawatts will be sold to the Electricity Generating Authority of Thailand (EGAT) in line with the SPP (small power producer) program for at least 20 years. UT will hold a 26% stake in the new company, while Union Energy holds 25%, British Gas holds 24.5% and EGCOMP holds 24.5%. The registered capital of the new company will be determined later. The power plant to be constructed will be the combined cyble plant using the natural gas as the energy for the cogeneration of electricity and steam. The plant will be located within the factory of UT, at Bang Pu, Samut Prakarn provicne. The project will require an investment of about Bt2,000 million. The construction which will be commenced round mid 1996, will take 2 years 6 months. Union Energy Co operates the energy business both locally and abroad and is the company in the Saha Union Group. It has the plant construction project in China. British Gas Co runs the gas related business and produces electricity internationally. EGCOMP is the public company operating the biggest power business in Thailand. Translated by the Nati