Pipes and compounds manufacturer Crown Asia Chemicals Corp. is seeing more supply agreements with solar power projects.
In a statement, the company said it recently secured a supply deal to provide high-density polyethylene (HDPE) pipes for a 25-megawatt (MW) solar power plant of Citicore Power Inc. in Barangay Rizal, Silay City, Negros Occidental.
The 25-MW will provide electricity to 4,000 homes in the area.
Aside from the Citicore plant, Crown Asia will also supply HDPE pipes to a 20-MW solar power plant of Next Generation Power Technology Corp. at the Freeport Area of Bataan.
The company’s HDPE pipes for both plants will be used for underground installation of electrical lines.
At present, Crown Asia is supplying polyvinyl chloride (PVC) pipes to a solar power plant of MIESCOR, a subsidiary of Manila Electric Co. (Meralco), in Digos, Davao.
The pipes maker has started production in its newly constructed polypropylene random (PPR) and HDPE plant in August.
PPR pipes are used for hot and cold applications while HDPE pipes are used for industrial applications that demand higher-pressure rates.
“The new PPR/HDPE pipe products are expected to synergize with our current Crown PVC offerings, and provide customers with wider options, while expanding our market sector applications,” Walter Villanueva, Crown Asia chairman, said in a statement.
“With our new PPR and HDPE product lines, we are able to tap projects, such as subdivisions, industrial facilities, and power plants,” he added.
Aside from manufacturing PPR and HDPE pipes, Crown Asia is the first pipe company in the Philippines to manufacture a complete line of PPR fittings.
In the first nine months of the year, the firm nearly doubled its net income to P70.49 million from P44 million a year ago, as revenues went up to P799.23 million from P622.37 million the same nine months last year.
The company has set aside P175 million in capital expenditure (capex) for 2015, which is higher than its P63.4-million spending last year.
The company funded its capex mostly through its P222-million initial public offering (IPO), having P203.98-million proceeds, net of listing-related expenses and taxes.
Crown Asia is a plastic compound and pipes producer owned by the Villanueva and Perez families based in Guiguinto, Bulacan.
It manufactures and sells plastic chemicals and compounds, as well as synthetic resins for making construction materials, such as tubes and pipes.
The company is competing with Neltex, Moldex, Emerald and Atlanta in the pipes manufacturing industry, while D&L Industries Inc. and Elastobest Manufacturing Corp. are some of its competitors in the specialty plastics, chemicals and compounds segment.
The company is the first to debut at the PSE this year.