Thai lubricant blender PSP Specialties Public Co. Ltd announced a 57% jump in net profit for the financial year 2024 and plans to grow its overseas revenue to 30% within the next three years.
Lubricant demand in Thailand is expected to increase to 741 million liters from 671 million liters, rubber process oil to 76 million liters from 66 million liters and transformer oil to 21 million liters from 20 million liters between 2024 and 2029, according to PSP. Kline & Co estimates Thailand’s lubricant market will increase at an average rate of 1.7% per year.
A number of global lubricant makers have relocated production bases to PSP, making Thailand a production and export hub Southeast Asian and Asian markets. PSP also expanded exports to new markets such as Sri Lanka, Oman, Panama and Myanmar, while domestic demand is slow, said the company.
“We currently export to more than 40 countries worldwide covering Asia, Europe, Africa, Australia, America. We target to increase more portions in Asia, Middle East and Central America,” Temsiripong said.
The company showed net profit of 671.7 million baht (U.S.$20 million), an increase of 57% compared to the previous year. Total sales increased 9% to 13,350.6 million baht. The growth was due in part to cost reduction, made possible by rolling out efficiency software.
“We implemented a new enterprise resource planning software in 2024 and will continue to have more modules in 2025. It improved the working efficiency and shortened processes for every function in the distribution center, finance, production planning, filling, customer relations, and others,” Chotdhanin Temsiripong, corporate strategy director of PSP, told Lube Report.
PSP has lubricants production capacity of 212 million liters per year, including from its Myanmar subsidiary, Pacific-PSP Syntech Co. Ltd., 27,548 metric tons per year of grease, 44 million L/y of rubber process oil and 25 million L/y of transformer oil.