PSP Specialties Forecasts 15% Revenue Growth Amid Lucrative Lubricant Sales
The Thai lubricant manufacturer anticipates increased sales through international markets and innovative products in 2025.
PSP Specialties, a prominent Thai lubricant manufacturer listed on the Stock Exchange of Thailand, has projected a 15% increase in revenue for the year 2025, driven by expanding its overseas market presence and introducing new products tailored for data centres and cloud computing businesses.
In 2024, the company recorded a revenue of 13.3 billion baht, marking its highest revenue in the past 35 years, up from 12.2 billion baht in 2023. The gains are attributed to a strategic emphasis on international exports as domestic demand for lubricants, particularly for internal combustion engines, shows signs of maturation and a slowdown.
Deputy Chief Executive Sakesan Krongphanich indicated that the shift in focus is essential as the domestic market is becoming saturated.
"We will increase our exports as the domestic market is becoming mature," he stated.
In 2024, PSP exported 44 million litres of lubricant products, generating revenue of 2.47 billion baht, which represented a year-on-year increase of 32%, and accounted for 20% of its total lubricant production.
Sakesan anticipates that sales in international markets will continue to grow, aiming for exports to rise to 30.8% of total production by 2028, with particular growth expected in markets such as Myanmar.
In addition to expanding its export strategies, PSP Specialties is focusing on product development, especially in specialty lubricants and coolants.
The demand for coolants is expected to surge, driven by the heating requirements of data centres and cloud businesses, along with the electric vehicle (EV) sector.
The Thai government’s promotional initiatives under the "30@30" policy envision that EVs will constitute at least 30% of total auto production by 2030. This target includes 725,000 zero-emission vehicles, 675,000 electric motorcycles, and 34,000 electric buses and trucks.
To diversify its product offerings, PSP has formed a partnership with a subsidiary of PTT Global Chemical to develop bio-lubricants derived from palm oil, which are biodegradable and reduce dependency on fossil fuel-based feedstocks.
In addition to focusing on new product lines, PSP Specialties also plans to enhance its investment in Recycle Engineering Co, a company that recycles chemical products like used solvents, by raising its ownership stake from 28% to 65%.
This investment is part of the company's broader strategy to innovate and respond to market needs.
In 2024, the company recorded a revenue of 13.3 billion baht, marking its highest revenue in the past 35 years, up from 12.2 billion baht in 2023. The gains are attributed to a strategic emphasis on international exports as domestic demand for lubricants, particularly for internal combustion engines, shows signs of maturation and a slowdown.
Deputy Chief Executive Sakesan Krongphanich indicated that the shift in focus is essential as the domestic market is becoming saturated.
"We will increase our exports as the domestic market is becoming mature," he stated.
In 2024, PSP exported 44 million litres of lubricant products, generating revenue of 2.47 billion baht, which represented a year-on-year increase of 32%, and accounted for 20% of its total lubricant production.
Sakesan anticipates that sales in international markets will continue to grow, aiming for exports to rise to 30.8% of total production by 2028, with particular growth expected in markets such as Myanmar.
In addition to expanding its export strategies, PSP Specialties is focusing on product development, especially in specialty lubricants and coolants.
The demand for coolants is expected to surge, driven by the heating requirements of data centres and cloud businesses, along with the electric vehicle (EV) sector.
The Thai government’s promotional initiatives under the "30@30" policy envision that EVs will constitute at least 30% of total auto production by 2030. This target includes 725,000 zero-emission vehicles, 675,000 electric motorcycles, and 34,000 electric buses and trucks.
To diversify its product offerings, PSP has formed a partnership with a subsidiary of PTT Global Chemical to develop bio-lubricants derived from palm oil, which are biodegradable and reduce dependency on fossil fuel-based feedstocks.
In addition to focusing on new product lines, PSP Specialties also plans to enhance its investment in Recycle Engineering Co, a company that recycles chemical products like used solvents, by raising its ownership stake from 28% to 65%.
This investment is part of the company's broader strategy to innovate and respond to market needs.
