SET-listed PSP Specialties, a Thai lubricant manufacturer, expects its revenue to increase by 15% this year as sales will be boosted via overseas market expansion and new products offered to data centres and cloud businesses.
Last year the company racked up 13.3 billion baht in revenue, its highest in 35 years, up from 12.2 billion baht in 2023.
PSP is employing a mix of strategies to drive its revenue in 2025, including focusing more on overseas markets and developing new products, said deputy chief executive Sakesan Krongphanich.
"We will increase our exports as the domestic market is becoming mature," he said.
Domestic demand for lubricants for internal combustion engines is slowing, which means it will be difficult to achieve a double-digit growth rate this year, said Mr Sakesan.
In 2024 PSP exported 44 million litres of lube oil products, earning 2.47 billion baht, a year-on-year increase of 32%.
The amount represented 20% of total lubricant production.
Mr Sakesan expect sales in overseas markets to keep growing this year, increasing the proportion of exported lubricants to 30.8% by 2028.
The company aims to benefit from sales growth in several markets, especially Myanmar, he said.
PSP has been developing new products, including speciality lubricants and coolants.
Demand for coolants from data centres and cloud businesses is expected to increase as they generate significant amounts of intense heat during operations, said Mr Sakesan.
PSP will also sell coolants to customers in the electric vehicle (EV) sector, which is being promoted by the government.
Under the "30@30" policy, Thailand expects EVs to represent at least 30% of total auto production by 2030, made up of 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks.
The company has also partnered with a subsidiary of PTT Global Chemical to develop palm oil-derived lube oil to offer new products to customers, said Mr Sakesan.
The bio-lubricants, which are biodegradable, help users depend less on fossil fuels, a traditional feedstock for producing lube oil.
Mr Sakesan said the company also plans to invest more in Recycle Engineering Co, which recycles chemical products including used solvents, by increasing its shareholding to 65%, up from 28% at present.