B10bn industrial estate tabled
Thai-Chinese joint venture envisioned to sprawl across two Rayong districts
Thai-Chinese joint venture CG Corporation is teaming up with three Chinese agencies to study the feasibility of investing in the 12 targeted industries in Rayong province at a 3,068-rai industrial estate with a development cost of 10 billion baht.
The targeted industries under the S-curve policy are new-generation automobiles; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; medical services; defence; and education.
CG Corporation has paid-up capital of 2 billion baht from a joint venture between CP Land Plc, the property arm of Charoen Pokphand Group, and China's Guangxi Construction Engineering Group.
CP Land owns a 50% stake, the Chinese group holds 48% and a local subsidiary, Guangxi Construction Engineering Yian Thailand, accounts for the remaining 2%.
The new industrial estate being developed, CPGC, is in Ban Khai and Nikhom Phatthana districts in Rayong.
CG Corporation signed three agreements yesterday. The first was with the Chinese Academy of Sciences (CAS) to develop and transfer knowledge of innovation and high technology under the CAS high-technology industrial zone in Thailand.
The second was with CAS Ion Medical Technology Co to handle research and development activities in medical and healthcare, as well as bring Chinese to invest in the sector to upgrade the country to the hub of Asia.
The third was with China Energy Engineering Group Yunnan Electric Power Design Institute Co to develop know-how, techniques and technology in energy and power solutions for industrial estates.
The goal is to build gas turbines or combined-cycle power plants in the future.
Sunthorn Arunanondchai, CP Land's chief executive, said the company expects all three agreements to improve the country's industrial sector in many aspects, including manufacturing efficiency and high-skilled human resources to serve the 12 targeted industries.
"Thailand and China have had a strong diplomatic relationship for two decades, while this cooperation is part of achieving the government's goals for the Industry 4.0 initiative," said Mr Sunthorn, who is also chairman of CG Corporation.
CPGC Industrial Estate aims to attract Chinese investors from the mainland, Hong Kong and Taiwan.
Mr Sunthorn said 20-30 Chinese investors have agreed to buy land in the industrial estate to serve sectors such as electric vehicles, medical, robotics and automation, as they have spotted a big opportunity in the government's flagship Eastern Economic Corridor scheme.
In August, CG Corporation announced development of land in three phases, all to be completed by 2021.
The construction for the 900-rai first phase will start some time in the first quarter of 2019 for the preparation of related infrastructure -- roads and utilities -- scheduled for completion next year.
The 700-rai second phase will start in 2020, and the 500-rai third phase will conclude in 2021.