Amata Corporation, the SET-listed industrial estate developer, has revised up its full-year land sales target to 3,500 rai from a previous 3,000 because of strong demand for industrial land from both Thai and foreign firms.
Amata sold nearly 2,000 rai in the first six months and prospects are better for the latter half, said managing director Viboon Kromadit, adding that deals for 800 rai of land are waiting to be signed.
Most of the customers are still Japanese investors from the automotive, agriculture and consumer goods sectors.
Japanese car makers are expanding their production lines, driving parts makers to expand too, said Mr Viboon.
"Foreign investors will come to our estates as a result of growing conflicts between China and Japan concerning area ownership, and the situation is expected to be prolonged," he said.
For its part, China plans to diversify its investments, especially by relocating production to Asian countries to avoid sanctions from Europe and the US.
The Chinese government's increased minimum wage has resulted in higher production costs there, said Mr Viboon.
Meanwhile, investment in Thailand has begun to shift from flood-prone areas in the northern part of Bangkok to the safer eastern region, which is convenient in terms of logistics and sourcing of raw materials for industry.
Amata City and Amata Nakhon in Rayong and Chon Buri, respectively, have 2,800 rai of developed land available for sale, with an additional 11,000 rai still awaiting development.
Amata is in the process of developing more land to prepare for business growth expected next year. It will also increase its investment in electricity and water resources.
In September, a 130-megawatt power plant came online in Amata Nakorn to supply electricity to industry. Two more plants will begin operating next year in Amata City.
Shares of AMATA closed yesterday on the Stock Exchange of Thailand at 17.10 baht, up 30 satang, in trade worth 153 million baht.
About the author
- Writer: Nanchanok Wongsamuth
Position: News Reporter