To build sustainable growth amidst the current domestic and international challenges, recession from the fluctuation of oil price in the global market affecting economic situations and construction industry relating to energy sector and the auction postponement of some projects and more intense business competitions are the issues that the Board of executives and I realize and we have started to review short-term and long-term strategies and to improve operation processes so that the Company can grow continuously based on the corporate governance. Its highest aim is to provide appropriate returns to shareholders and stakeholders.

The Company still places emphasis on large steel fabrication structures which is the main business of the Company, by increasingly participating in bidding of large-scale gas separation plant and oil refinery projects in North America and other countries, as well as attending in auctions of building construction projects where steel is used as the main structure in Japan, we are also studying and seeking for opportunities to expand its works to activities relating to manufacturing, removal, and demolition of offshore oil and gas platforms. Although such business opportunities have slowed down, the trend is to see an expansion increasingly from the year 2018 onwards. As a result, the Company still maintains its competitiveness level which is to deliver qualified works timely and within suitable costs and focus on the highest safety of operations. The Company will maintain such standard consistently for the future achieving auctions and building reliability to target customers.

With our experienced teams who have succeeded in a variety of extensive projects, the Company is ready and confident to drive the aforementioned large-scale project forward to its targeted completion. Nevertheless, the management team and I admit that there is a need to focus on improving the risk evaluation and management strategies to a controllable level; namely material price fluctuation, workforce and exchange rate risks. It is a challenge and complexity for the management team to develop and create the best return for our shareholders simultaneously. The management team and I are committed to run the business carefully and to ensure satisfaction for our customers and to bring prosperity and security to the Company in the long term.

In addition, the necessity for creating value of the Company’s activities to grow and meet the long-term goals is an important matter. The Company plans are to seek an investment strategy that expands scope and looks for other business opportunities other than large steel structure fabrication business. At the end of the year 2016, the Company invested in the community waste power plant with the capacity of 7.99 megawatts in Petchaburi which was in accordance with the Alternative Energy Development Plan (ADEP2015). The Company has studied the feasibility in terms of finance, environment and society, the risk assessment of the project, and the management of the project construction. It will take about 2-3 years to be completed and create revenues. It is also the pilot project of the Company to learn and get ready for investment in businesses relating to alternative energy in the future carefully and concisely, as well as to adhere to ethics and the good corporate governance principles in the Company’s management.

The Board of Executives and I are highly committed to develop the Company’s main business and new business opportunities possibly occurring in the next 3-5 years. On behalf of the Board of Directors, I would like to thank all shareholders, customers, business partners and concerned persons, including domestic and international financial institutes for supporting operations of STP&I. I would also like to thank all executives and employees who perform their duties with their efforts and work together with us to develop the Company in both a stable manner with sustainably for the highest benefits of all concerned persons.

Masthawin Charnvirakul

Managing Director
STP&I Public Company Limited