CMAN Controls Costs and Diversifies Risk with Expansion into India and ASEAN to Navigate Energy Crisis
Chememan Public Company is cutting costs through energy diversification and electric vehicle adoption while expanding into India and Vietnam to manage volatile energy prices that consume 25-30% of production costs. The company posted 361 mi
Adisak Laochan, Chief Executive Officer of Chememan Public Company Limited (CMAN), a lime and chemical products manufacturer under the CHEMEMAN brand, has announced that the company is accelerating operational efficiency improvements to manage risks effectively and mitigate the impact of energy prices, which account for 25-30% of total costs, along with significant freight rate increases. Approximately 70-80% of the company's customers can adjust pricing based on costs within a short timeframe, and nearly all customers can adjust prices according to contract terms in severe situations.
The company is pursuing aggressive strategies through energy diversification and intensive supply chain management, including plans to increase electric truck (EV) usage to 50% of total fleet needs by 2026 to reduce oil price impacts, implementing mixed energy approaches in production using coal, gas, and electricity, and investing in alternative energy sources such as solar farms for long-term efficiency gains.
"These cost-saving measures are being studied for feasibility across our foreign business units. During this period, the company will not enter into long-term contracts with fixed pricing, and will adjust product prices promptly to reflect increased operational costs," the statement said.
For fiscal 2025, the company recorded net profit of 361 million baht after significantly reducing debt, positioning the company for future business expansion while maintaining consistent dividend payments. The shareholders' meeting approved dividend payments of 0.15 baht per share, totaling 144 million baht, representing approximately 40% of net profit and reflecting stable cash flow and strong financial discipline.
Adisak stated that in today's world, uncertainty is commonplace, and while the company does not view business operations as easy, it is confident that an increasingly robust business structure will enable significantly better management of volatility than in the past.
"This situation also presents business opportunities for the company, particularly in India and Vietnam markets, where we are implementing regional growth strategies through expansion and acquisition in strategic areas including Indochina, India, and Australia to build long-term strength, despite Middle East tensions creating ripples in the global economy," he added.
Currently, the company ranks among the world's top 10 lime producers with annual production capacity exceeding 1.2 million tons. Lime is a critical basic chemical used extensively across numerous industries. Chememan operates high-quality limestone mines in Thailand and Vietnam, and operates lime production plants using modern technology and innovation in Thailand, Vietnam, and India, plus a distribution center in Australia, enabling the company to expand its customer base across multiple industrial groups while focusing on developing high-value-added products for target customers.
However, the company exports 60% of its total lime sales volume to over 30 countries across Asia, Australia, and Africa through an extensive business network, which is a significant factor driving growth opportunities.
