Business partner

Business partner

Company Shareholding Structure of its subsidiary
Currently the company operates in 2 main business groups, namely
• Leather products: tanning, leather and leather car seat parts, dog toys and furniture
• Energy Group: Exporting chopped wood, producing and selling electricity from renewable energy
บริษัท ชัยวัฒนา แทนเนอรี่ กรุ๊ป จำกัด (มหาชน)

            In 1995, Chai Watana Tannery Group Public Company Limited has a policy to invest in expand the company by adding new product lines made from tanned animal skins. Firstly, the company has started to negotiate for orders with the manufacturer of parts used in the automobile industry as the possibility of such policy of expansion by preliminary testing products quality. The company therefore began to consider the location to expand production capacity.

            For the year 2005, Chai Watana Tannery Group Public Company Limited purchased additional investment in Pala Sub Company Limited from the existing shareholders of Leatherline Products Company Limited in the amount of 21,599,930 baht. With the investment in the purchase of shares of Pala Sub Company Limited from the existing shareholders of 2,159,993 shares at par price (par value at 10.00 baht per share), totaling 21,599,930 baht as follows

            Later on in 2004, Pala Sub Company limited policy changed to provide tanning service for automobile leather seats for Chai Watana Tannery Group Public Company Limited. In addition, in the year 2004, the automobile industry has a high growth rate and has a tendency of growth in the future due to the growth of the world economy and government support measures.

Pala Sub Company Limited, established on 1 July 1996, located at 1087 Village No. 6, Bang Pu Mai Subdistrict Mueang Samut Prakan District Samut Prakan 10280 is engaged in the business of leasing land, buildings and factories with the initial registered capital of 120,000,000 baht (one hundred twenty million baht). At present, the company has a registered capital of 150,000,000 baht (one hundred and fifty million baht) divided into 15,000,000 ordinary shares at Par 10 baht per share, which Chai Watana Tannery Group holds 14,999,993 shares or 100%


In 1995, Chai Watana Tannery Group Public Company Limited has a policy to invest in expand the company by adding new product lines made from tanned animal skins. Firstly, the company has started to negotiate for orders with the manufacturer of parts used in the automobile industry as the possibility of such policy of expansion by preliminary testing products quality. The company therefore began to consider the location to expand production capacity.


In 1996, Leather Line Products Company Limited ("Leather Line"), a leather business operator, heard news about Pala Intertrade Company Limited, the company that produces tanned leather is selling the company. Intending to liquidate the business Leather Line Products Company Limited persuaded the Chai Watana Tannery Group to invest by purchasing assets used in the tanning business from Pala Intertrade Company Limited. After the acquisition of that company, the company has registered to change the company name to Pala Sub Company Limited, in which the company holds 60% of the shares. And Leather Line Products Company Limited, holding 40% of the shares


Later, in 2004, the Chai Watana Tannery Group further invested in Pala Sub Company Limited by repurchasing the outstanding shares of Leather Line Products Company Limited in the amount of 26.40 million baht and also purchased additional 3 million ordinary shares with a par value of 10 baht per share, totaling 30 million baht, resulting in the company having a 85.60% stake
For the year 2005, Chai Watana Tannery Group Public Company Limited purchased additional investment in Pala Sub Company Limited from the former shareholders of Leather Line Products Company Limited in the amount of 21,599,930 baht comes from 2,159,993 share with a par value of 10 baht per share


Later on in 2004, Pala Sub Company limited policy changed to provide tanning service for automobile leather seats for Chai Watana Tannery Group Public Company Limited. In addition, in the year 2004, the automobile industry has a high growth rate and has a tendency of growth in the future due to the growth of the world economy and government support measures. From these factors, the operating results of the year 2004 of Pala Sub Company Limited have improved. With a net profit from operations of 9.23 million baht. In addition, in 2004, Pala Sub Company Limited increased the registered and paid-up capital. As a result, the shareholders' equity of Pala Sab Company Limited as of December 31, 2004 was positive. There is no event that has a significant impact on the financial status and operating results of the Company and Pala Sab Company Limited in any way except for the production capacity reserve to support the production of leather seats that are expected to increase in the future.


Considering the better performance of Pala Sub Company Limited, which has helped to support the business expansion of the company in the past and in the past the company, as a major shareholder, has a stable financial status, has always been the sole financial support and guarantee for Pala Sub Company Limited. In order to maximize benefits to the company in terms of risks and returns, the Board of Directors Meeting agreed to acquire more shares from Pala Sub Company Limited by purchasing 2,159,993 shares of Pala Sub Company Limited from Leather Line Products Company Limited at the price of each share 10.00 baht resulting in the company having a 100.00 percent stake Pala Sub Company Limited.


Later on, Chai Watana Tannery Group Public Company Limited has appointed 2 directors of the company to take up the position of directors in the subsidiary company. The performance of Pala Sab Company Limited, since the establishment of the company in 1996, the subsidiary suffered a foreign exchange loss of 152.76 million baht in 1997 the same year that Thailand experienced economic and financial crises. From the incident, it affected the company's financial status and operating results which the subsidiary has accumulated loss in excess of paid-up capital, including cancellation of the project to expand investment in leather seats and automobile leather parts of a subsidiary company. These problems all together affects the expected revenue of the company including the burden of interest expenses causing the company to have continuous operating losses


In the summer of year 2007, Pala Sub Company Limited changed its business policy resulting in 2010, Pala Sub Company Limited had a profit of 0.51 million baht and a loss of 0.70 million baht in 2011 due to many of our customers being affected by the big flood crisis in Thailand causing the plant to be shut down and production halted. Therefore, Chai Watana Tannery Group Public Company Limited negotiated to reduce the rental area, resulting in the revenue of Pala Sub Company Limited decreased and in year 2012, even though the company allocated the space to other operators to rent but the rental still takes up little space and as a result, Pala Sub Company Limited still faces a net loss of 0.86 million baht.

บริษัท บริษัท เอ็นเอชเค สปริง (กัมพูชา) จำกัด

           On July 7th, 2015, the company and NHK Spring (Cambodia) Co., Ltd registered the establishment of NHK Spring (Cambodia) Co., Ltd. to manufacture and sell Sewing Cover for auto parts in Poipet, Cambodia. This is in accordance with a joint venture agreement between the company and NHK Spring (Cambodia) Co., Ltd, with a registered capital of USD 3,658,000 divided into 365,800 ordinary shares at a par value of USD 10 per share. On July 10th, 2015, the company invested in the newly established company amounting to US $ 914,500 (91,450 shares with a value of USD 10 per share), equivalent to 25% of shares. In 2015 the factory was completed and in April of 2016 it was ready for production at a capacity of about 160,000 tons / year

บริษัท ชัยวัฒนากรีน จำกัด

           On the 6th of September 2016, the company bought shares amounting to 100% of the shares from other existing shareholders of Chai Watana Green Power Co., Ltd to operate in the renewable energy business with a registered capital of 400,000,000 baht (40,000,000 ordinary shares with a par value of 10 baht each). Additionally, the Chai Watana Green Power Co., Ltd has invested in additional subsidiaries as follows:

1. Chai Watana Green Management Co., Ltd engages in the management consulting service on alternative energy projects; invested 100%

2. Waste Management 1 Co., Ltd engages in waste separation and waste management to sell and distribute as fuel to power plants; invested 75%

3. Green Power 1 Co., Ltd engages in the production of electricity from waste fuels; invested 75%

4. Chai Watana Export Co Ltd engages in the export of wood chips; Invested 80%

5. Kok Charoen Green Energy Co., Ltd engages in the production and distribution of biomass electricity; Invested 100%

6. Blue Solar Farm 3 Co., Ltd engages in the production and distribution of electricity from solar energy, invested 49%

          As of 20th September 2017, the company re-registered as Chai Watana Green Company Limited "CWTG”

บริษัท ชัยวัฒนา กรีนแมนเนจเม้นท์ จำกัด

            On the 19th of September 2016, a subsidiary company of CWT, Chai Watana Green Power Co., Ltd. established a subsidiary company called Chai Watana Green Management Co Ltd.; to provide consulting services on alternative energy project management with a registered capital of 1,000,000 baht divided into 100,000 ordinary shares at a price of 10 baht per share.

บริษัท กรีน เพาเวอร์ 2 จำกัด

            On 17th August 2016, a subsidiary, Chai Watana Green Power Company Limited, purchased 100% of shares from existing shareholders of KOKCHAROEN GREEN ENERGY Co., Ltd, with a registered capital of 1,000,000 baht divided into 10,000 ordinary shares at a price of 100 baht per share.

            On 17th October 2016 the company increased the registered capital from 1,000,000 baht to 60,000,000 baht to proceed with The Biomass Power Plant Project which is a power generation plant from eucalyptus bark and Benjaphon trees. The plant has 9.6 megawatts production capacity.

            Furthermore, there was amendment made to the power purchasing agreement (VSPP-PEA- 042/2558) with the Provincial Electricity Authority by changing the electricity rate from the Adder rate to the Feed in Tariff (Fit) rate. This contract has a life of 15 years and 4 months from the date of commencement of power purchase agreement (COD). The electricity produced by the project will be distributed to the Provincial Electricity Authority's (PEA) network with the highest amount of electrical power of 8 megawatts at 22,000 Volts. There is a power purchase point at the installation point in Sala Lamduan, Mueang Sa Kaeo, Srakaew Province. The expected revenue from the sale of electricity in July 2018 will be approximately 959 million baht.

            In December 2016, a memorandum of agreement was signed for the purchase of machinery including installation and for construction of the biomass power plant.

            Kok Charoen Co., Ltd. has been approved by the Energy Regulatory Commission (ERC) on 14 February 2017 to receive a permit to operate an energy production plant to produce electricity from biomass. On May 9th 2017, the registered capital was increased by 240 million baht, from 60 million baht to 300 million baht. Registration of additional paid-up capital was done with the Department of Business Development, Ministry of Commerce on 23rd Aug 2017.

            On August 9th 2017, Kok Charoen Co., Ltd was re-registered as Green Power 2 Company Limited "GP2".

บริษัท  กรีน เพาเวอร์ 1  จำกัด

            On 8th August 2016, a subsidiary company, Chai Watana Green Power Company Limited, jointly invested with ZW Power Co., Ltd. in the proportion of 75.01% and 24.99% percent respectively, to form Chai Watana Green Power 1 Company Limited to operate the electricity production business from waste fuel. The registered capital was 1,000,000 baht divided into 100,000 ordinary shares at a price of 10 baht per share. 

            Later, on 7th September 2016, Chai Watana Green Power 1 Co., Ltd increased the registered capital by 49,000,000 baht from the original registered capital of 1,000,000 baht to a new registered capital equating to 50,000,000 baht. This is divided into 5,000,000 ordinary shares with a par value of 10 baht each by calling for a share payment of 2.50 baht per share. The subsidiary (Chai Watana Green Power Co., Ltd.) invested in additional ordinary shares in Chai Watana Green Power 1 Co., Ltd at 75 percent, in order to maintain Proportion of shares held.

            At present, it is in the process of studying and analyzing the project for electricity production from waste material and is yet to receive a license for electricity production.

            On 20th September 2017, it was re-registered as Green Power 1 Co., Ltd. "GP1"

            On 22 November 2016, a subsidiary, Chai Watana Green Power Company Limited, invested 49% of the additional shares in Blue Solar Farm 3, representing 588,000 shares with a registered capital of 120,000,000 baht. Divided into 1,200,000 ordinary shares at a price of 100 baht per share for the “solar farm”- electricity generation project from solar energy.

            This project has already obtained PPA, PVF2-PEA-051/855, on the 31st August 2016. Blue Solar Farm 3 Company Limited has been appointed as a project sponsor by the Agricultural Cooperative for Customer Marketing BAAC Samut Sakhon Co., Ltd and have entered into a power purchase agreement with the Provincial Electricity Authority with the maximum purchase power of 5.0 megawatts of electricity for a period of 25 years from the date of commercial power distribution (SCOD) on December 30th, 2016.

            Currently, it is licensed to operate a factory by the provincial industrial office as of 13th October 2016, according to the book Aug 0033 (3) / 11695. It sold electricity as commercial power distribution to the Provincial Electricity Authority. On December 28, the factory has passed electrical quality testing and will be allowed to receive revenue from commercial electricity distribution from 9th Jan 2017.