Bangkok Lubricant Maker Projects 15% Revenue Surge in 2025
Bangkok—Thai lubricant manufacturer PSP Specialties forecasts a 15% revenue increase in 2025, driven by strategic expansion into international markets and the development of innovative products for burgeoning sectors such as data centers and electric vehicles. This ambitious projection follows a record-breaking year in 2024, where the company achieved its highest revenue in 35 years, reaching 13.3 billion baht, up from 12.2 billion baht in 2023.
The company’s Deputy Chief Executive Officer, Sakesan Krongphanich, outlined a multi-pronged growth strategy. Recognizing the maturing domestic market, PSP is increasingly focusing on overseas expansion. While domestic demand for traditional internal combustion engine lubricants is slowing, hindering double-digit growth, the international market presents significant opportunities. This strategic shift is underscored by the company’s strong 2024 export performance. PSP shipped 44 million liters of lubricant products, generating 2.47 billion baht—a remarkable 32% year-on-year increase, representing 20% of total lubricant production. Building on this momentum, Mr. Krongphanich anticipates continued export growth, aiming to increase their share of total lubricant production to 30.8% by 2028, with a particular focus on the Myanmar market.
Beyond geographical expansion, PSP is heavily investing in research and development. The company is developing specialized lubricants and coolants for the demanding needs of data centers and cloud computing businesses, which generate significant heat, creating a growing demand for efficient cooling solutions. This positions PSP to capitalize on the expanding digital infrastructure market. Furthermore, PSP is targeting the burgeoning electric vehicle (EV) sector with its coolant products. This aligns with the Thai government’s ambitious “30@30” policy, aiming for EVs to comprise at least 30% of total auto production by 2030—an ambitious target of 725,000 zero-emission cars, 675,000 electric motorcycles, and 34,000 electric buses and trucks.
In a further significant development, PSP is embracing sustainability through a partnership with a PTT Global Chemical subsidiary to develop palm oil-derived, biodegradable lubricants. This provides customers with an environmentally friendly alternative to traditional fossil fuel-based products, diversifying PSP’s portfolio and aligning with growing global demand for sustainable solutions.
Finally, demonstrating its commitment to a circular economy, PSP plans to increase its stake in Recycle Engineering Co., a company specializing in recycling chemical products, including used solvents. The company intends to increase its shareholding from 28% to 65%, signaling a significant investment in recycling infrastructure and further strengthening its commitment to sustainable practices.
This multifaceted approach—combining international expansion, product innovation, and a focus on sustainability—positions PSP Specialties for continued success in the dynamic lubricants market. The company’s ambitious growth targets and strategic initiatives suggest a bright future for this Thai lubricant manufacturer.
