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Thai investment in Burma industrial center

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Major Thai companies build factories at Dawei deep sea port & industrial city in Burma (steel, fertiliser, petrochemicals). 132 km road from Thailand finished.

dawei map

Photo above shows the central location of Dawei, Burma on a map of Southeast Asia along with trade and transport routes out of Dawei as Mr Premchai of Italian-Thai Development (ITD) discusses progress of the Dawei project at a briefing.   

Click button to listen to Steel Mill in Dawei to download

ITD firms Dawei project, Steel mill estimate runs to B300bn by Nuntawun Polkuamdee


Italian-Thai Development [ITD] expects to allot 40,000 rai of industrial land in Burma's Dawei project next year, with plans calling for a 300-billion-baht steel mill, says ITD president Premchai Karnasuta.

The industrial estate will also comprise a fertiliser factory and petrochemical refineries. The basic infrastructure for industrial use is expected to be completed and ready to operate in 2015.

Mr Premchai said the steel mill would sit on 12,000 rai of land, with an investment of as much as 300 billion baht, and ITD would have a Japanese partner.

The mill would have a production capacity of 10 million tonnes per year, and also make downstream products for industrial and electronic uses.

Separately, ITD is negotiating with the national energy flagship, PTT, in an oil-and-gas venture.

The company previously succeeded in selling 3,000 rai of land to Ratchaburi Holding for building power plants, with revenue to be realised in 2012.

Mr Premchai said land prices in the Dawei project were on par with those in Map Ta Phut in eastern Thailand. But Dawei will include a deep-sea port that can serve a large bulk weight of 80,000 tonnes and 55 vessels at once.

Construction is completed on a 132-kilometre road from Thailand to Dawei. The first phase of the deep-sea port is expected to begin soon and conclude in the next four years, with all infrastructure in the area to be finished within a decade.

ITD has been seeking investment partners since the Burmese government granted it a 75-year concession on 160,000 rai in Dawei. It arranged roadshows in China, Japan, South Korea, India and elsewhere. ITD's investment in the project is projected to be about US$8 billion.

According to an industry source, PTT will partner with ITD in a 3,000-megawatt coal-fired power plant in Dawei. The investment value of the plant is seen as high as $4 billion. The Electricity Generating Authority of Thailand is a potential buyer of power output from the plant.

Cement and paper plants are also planned for Dawei, Mr Premchai said.

Shares of ITD closed on Friday on the Stock Exchange of Thailand at 3.84 baht, down 4 satang, in trade worth 335.7 million baht.

(Source: Bangkok Post, ITD firms Dawei project, Steel mill estimate runs to B300bn, 13/12/2011, Nuntawun Polkuamdee, link)

Industrial Development Vocabulary

Dawei, Burma - a town located on the coast of Burma, plans are to use this city as a port to send and receive ship goods from Thailand and avoid the Singapore and Straits of Malacca detour, more feasible than the Isthmus of Kra canal idea (See Wikipedia)

construction is completed on a 132-kilometre road from Thailand to Dawei

Italian-Thai Development (ITD) - a large construction company, "constructs civil and infrastructure projects, including airports, buildings, dams and tunnels, highways, expressways, railways, bridges, industrial and power plants, mining, marine construction services, steel structures, telecommunications, and pipelines and utility works. It also provides support services for its construction works covering steel structure fabrication and erection; precast, pre-stressed concrete beams, panels, and viaduct sections; granite and marble cutting and polishing; glass-reinforced-concrete prefabricated elements; and construction plant and equipment maintenance. In addition, the company engages in the real estate operations, and in the rock quarrying, processing, and distribution activities; manufactures and distributes cement; involves in mining business; produces and sells vessels and equipment; and provides foundation and piling work services. Further, the company manufactures and distributes steel pipes for water transmission, piling, and other civil engineering applications; and turnouts for railway projects, as well as offers reinforcing bars and wire rods, enamel-coated wires, and power line and telecommunication cables. Additionally, it leases and sells sheet piles and beams; produces and distributes electricity; manufactures, distributes, and installs concrete sheets; operates as a service agent for Myanmar companies, as well as a designer and contractor for the chemical and petrochemical industry; and offers coal digestion services. Italian-Thai Development Public Company Limited was founded in 1958 and is headquartered in Bangkok, Thailand" (See website and Business Week)

Electricity Generating Authority of Thailand (EGAT) - Thailand's government-owned electricity generating monopoly (See Wikipedia)

Ratchaburi Electricity Generating Holding (Ratch) - a company that generates electricity founded in 2000, sells electricity to EGAT (See Business Week and website)

progress - how well something is going, whether goals are being achieved on time
progress of project

briefing - a meeting in which people are given information or instructions
discusses progress of the Dawei project at a briefing

firm (adjective) - make more certain and for sure; makes them better defined (example: a firm plan, have no firm plans yet) 
firm (verb) - to make firm; to make more certain  
ITD firms Dawei project - ITD firms up Dawei project plans (makes them more certain and defined) 

steel mill -
a large and expensive factory for making steel (See Wikipedia)
300-billion-baht steel mill

estimate - guesses an amount (not exact); to say what you think an amount or value is or will be, either by using available information or by guessing คาดคะเน โดยประมาณ
the bill runs to - the bill is, it costs 
steel mill estimate runs to B300bn

allot
- to give someone part of an amount of something that is available, or to decide that something will be used for a specific purpose จัดสรรเงินทุน
allot 40,000 rai of industrial land

comprise - to consist or be made up of two or more things ประกอบด้วย
fertiliser - food for plants, chemicals to make plants grow faster; a natural or chemical substance which is spread on the land or given to plants to make plants grow well ปุ๋ย (See Wikipedia)

petrochemical - chemicals made from oil ปิโตรเคมี
refinery -
a factory that makes useful products from raw materials such as chemicals (See Wikipedia)

industrial estate -  special area to build factories which has special infrastructure for industry and manfacturing such as transportation (ports, rail), electricity, waste disposal, etc) also called an "industrial park" (See Wikipedia)

the industrial estate will also comprise a fertiliser factory and petrochemical refineries

infrastructure - the high-cost facilities that everyone in the economy shares (water, roads, electricity, trains) สาธารณูปโภค
expected - believe will happen คาดว่า (จะเกิดขึ้น)
basic infrastructure for industrial use is expected to be completed and ready to operate in 2015

investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)
the steel mill would sit on 12,000 rai of land, with an investment of as much as 300 billion baht

production capacity - the amount of something that can be produced ความสามารถในการ (ผลิต)
production capacity of 10 million tonnes per year

downstream - at an late stage in the process of producing a product for sale (late in the supply chain)
make downstream products for industrial and electronic uses.

flagship - the most important in a group of things owned by a company (for example: flagship company, flagship publication) (See glossary) ที่เป็นตัวนำ ที่สำคัญที่สุด
the national energy flagship - the main company in a country that is in the energy business (in Thailand this is PTT)

venture - a new activity, usually in business, which involves risk or uncertainty ธุริกิจเสี่ยงแต่สามารถทำกำไรได้
oil-and-gas
venture

partners - the companies owning part of the joint venture หุ้นส่วน

negotiate - have discussions to make an agreement 
negotiating with the national energy flagship, PTT, in an oil-and-gas venture

power - energy in the form of electricity produced in large quantities and used to operate lights, machines, and heating
plants - factories
power plant - a factory that produces electricity

coal-fired power plants -  a plant that produces electricity for the people living in an area "by burning coal to boil water, producing steam which drives a steam turbine which turns an electrical generator" (See Wikipedia)

according to an industry source, PTT will partner with ITD in a 3,000-megawatt coal-fired power plant in Dawei.

revenue - income from taxes or business activities รายได้
realised - achieved; when what was planned is completed ทำให้เป็นจริง
revenue to be realised in 2012 - money the company will make in 2012

the company previously succeeded in selling 3,000 rai of land to Ratchaburi Holding for building power plants, with revenue to be realised in 2012

on par -
equal to, the same as (at least roughly, perhaps not exactly)
X on par with Y -
X roughly equals Y
Map Ta Phut Industrial Estate -
one of Thailand's largest industrial estates located in Rayong

land prices in the Dawei project were on par with those in Map Ta Phut

port - an area of water where ships stop, including the buildings around it ท่าเรือ
bulk - large amounts เป็นจำนวนมาก เป็นกุรุศ
vessels - ships เรือขนาดใหญ่

at once - at the same time
serve 55 vessels at once - serve 55 vessels at the same time

a
deep-sea port that can serve a large bulk weight of 80,000 tonnes and 55 vessels at once.

conclude - to finish; to complete an official agreement or task, or arrange a business deal จบ
decade - a period of ten years ทศวรรษ, ระยะเวลา 10 ปี

the first phase of the deep-sea port is expected to begin soon and conclude in the next four years, with all infrastructure in the area to be finished within a decade

concession
- government permission to do a restricted business; a right that is given to a person or group to do a particular activity, in this case, to operate a market สัมปทาน
granted - officially given ให ้
grant a concession - when the government gives a concession to a company

ITD has been seeking investment partners since the Burmese government granted it a 75-year concession on 160,000 rai in Dawei.

roadshows - shows or events to encourage investors to invest in the company (when a company or organisation travels to many locations to promote their products and services)
roadshows in China, Japan, South Korea, India and elsewhere

projected - expected, forecast; what people believe it will in the future
ITD's investment in the project is projected to be about US$8 billion.

source
- someone who gives information แหล่งข่าว
industry source - a person who knows an industry well who provides information to the media
according to an industry source - the industry source said (over the phone to a reporter or via email or face to face interview)

potential - possible ความเป็นไปได้
the Electricity Generating Authority of Thailand is a potential buyer of power output from the plant 

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