CP Land woos Chinese with Bt60 bn EEC joint venture
24 August 2018
CHAROEN Pokphand Group’s property arm CP Land Plc is teaming up with Guangxi Construction Engineering Group of China to set up an industrial estate in the Eastern Economic Corridor (EEC) that targets Chinese-speaking investors.
The project comes with an estimated investment of more than Bt60 billion and will create at least 20,000 jobs within six years.
Suwatana Kmolwatananisa, deputy governor for corporate strategy and development at Industrial Estate Authority of Thailand (IEAT), said that it and CG Corporation will set up CPGC Industrial Estate in Rayong province for the modern industries that are targeted by the government.
CG Corporation is a joint venture between CP Land (50 per cent), Guangxi Construction Engineering Group (48 per cent) and Guangxi Construction Engineering Yian (Thailand) |(2 per cent).
The joint venture is registered with Bt2 billion in capital and plans to raise the figure to Bt3 billion.
CPGC Industrial Estate will be situated on a 3,068-rai site in the Nikompattana and Bankhai districts of Rayong.
Some 2,205 rai will be set aside as the plant area, with 443 rai for utility systems and 307 rai for greenery and buffer area.
The planned industrial estate will be invested and developed by private enterprises with utility services and about Bt10 billion will be poured into utility system development.
“The project is aimed at investors who communicate in the Chinese language, coming from Hong Kong, Taiwan and mainland China. We target to sell out the project areas in six years with a combined investment of no less than Bt60 billion and employment of no less than 20,000 positions,” Suwatana said.
Sunthorn Arunanondchai, president of CP Land, said that this project will be developed in three phases with planned development of 1,000 rai in the first next year, with an estimated completion in 2019.
Some 700 rai will developed in the second with an estimated finish in 2020 and 500 rai will come on stream in the third phase, with completion scheduled for 2021.
The project will be finance by the joint venture’s capital and borrowings. The joint venture is conducting a feasibility study into establishment of a power plant in the industrial estate on expectation to finalise the plan within two years.