Pruksa Holding Partners with General Engineering to Finalize Innoprecast Share Swap Deal, Boosting Orders to Over 1.2 Billion Baht and Aiming to Become Thailand's Leading Low-Carbon Precast Manufacturer

Pruksa Holding Public Company Limited (PSH) has announced the successful completion of a share swap with Innoprecast Company Limited, a 51% subsidiary of PSH, to invest in 18.26% of General Engineering Public Company Limited (GEL), totaling 581.91 million baht. This aligns with the goals set at the beginning of last year. Following collaborative marketing efforts with GEL, the success of the business unit separation strategy has been demonstrated, attracting market interest and pushing the backlog of low-carbon precast orders from Innoprecast to exceed 1.2 billion baht. This will enhance production capacity to meet the increasing market demand, positioning us as the number one low-carbon precast manufacturer in Thailand.

Mr. Uthen Lohachitpitak, CEO of Pruksa Holding Group, expressed great satisfaction with the successful collaboration with General Engineering, which has now been finalized. After the annual general meetings of shareholders of both PSH and GEL approved the transaction, we have signed the share swap agreement to invest in the common shares of Innoprecast as planned. This represents a business opportunity to generate revenue and strong growth for both companies, with the vision of developing residential projects using low-carbon concrete and precast materials through the production and sale of precast slabs from “Innoprecast.” We are ready to increase production capacity to support the backlog of low-carbon precast slabs, with approximately 2 billion baht per year from Pruksa and over 1.2 billion baht from other customers, resulting in projected revenues this year exceeding the targets set earlier in the year.

In the past year, Innoprecast has focused on developing innovative hollow core precast slabs, ground beam designs, cement jointing techniques, and implementing zero waste practices, including recycling within the factory to achieve full green factory status. This has led to a reduction in cement usage by over 15,000 tons, equivalent to a reduction of 13,500 tons of carbon emissions. Continuing into 2023, we remain committed to advancing green technology by installing solar panels and enhancing precast slabs with “Carbon Cure” technology to produce low-carbon precast slabs for every home of our customers. Additionally, we have increased our capabilities and prepared environmentally friendly raw materials for precast slab production through a partnership in ready-mixed concrete supply contracts with the Siam City Cement Group, using certified carbon footprint and climate-friendly labels from the Thailand Greenhouse Gas Management Organization, reinforcing our position as the number one low-carbon precast manufacturer in Thailand.

On this occasion, executives from five companies, including Mr. Uthen Lohachitpitak, CEO of Pruksa Holding Group, Mr. Pornthap Supatharatharn, CEO of Innoprecast Company Limited, Mr. Thitipong Tangpunpholwiwat, CEO of General Engineering Public Company Limited, Mr. Piti Tuntakesem, CEO of Thai Military Bank Public Company Limited, and Mr. Yongyuth Luangratnamat, Managing Director of The Borealis Advisory Company Limited, along with several other executives, attended the signing ceremony for the share swap agreement to invest in the common shares of Innoprecast. PSH has appointed Thai Military Bank Public Company Limited and The Borealis Advisory Company Limited as financial advisors.