Amata doubles investment budget for estates

EEC and regional industry targeted

SET-listed Amata Corporation Plc has increased its investment budget from 5 billion baht planned earlier to 10 billion for domestic operations and industrial estates abroad.

Amata has allocated 3-5 billion baht tentatively for its domestic business, spurred by implementation of the government’s flagship Eastern Economic Corridor (EEC) scheme.

Some 3.4 billion baht will go to Amata’s SET-listed subsidiary, Amata VN Plc.

Combining the allocated funds, Amata has room to increase its investment to reach the planned 10 billion baht, said chief executive Viboon Kromadit.

“In Thailand particularly, the 2018 EEC Act is a key factor for Amata to revise its investment budget to develop land plots and infrastructures at its industrial estates in Chon Buri and Rayong,” Mr Viboon said. “Local and foreign investors have high expectations of fast development in the EEC locations and Amata has strategic industrial locations to serve all investors.”

Amata has two industrial estates, focusing on five S-curve industries: aerospace, electronics, electric vehicles, logistics, and robotics and automation.

Mr Viboon said Amata has confidence the much-touted EEC project will boost economic fundamentals and increase direct investment in Thailand.

Amata has 7,000 rai in Rayong and 3,000 rai in Chon Buri to be developed further in the near future.

Mr Viboon said the company is in talks with many investors, for example, Sweden’s Saab Automobile, to build a maintenance, repair and overhaul (MRO) hub in the EEC.

“Saab has expressed intentions to develop the hub and take part in several incentives and privileges offered by the government,” he said. “Moreover, there are other aircraft makers, Triumph Group and Airbus, interested in developing MRO sites in Thailand to provide air transport services in the region.”

Amata expects land sales to reach 925 rai in 2018, compared with 794 rai in 2017, with revenue growing by 10-20% from last year’s 5.3 billion baht.

In Vietnam, Amata VN plans to invest in Amata City Bien Hoa, Amata City Halong and Amata City Long Thanh.

Natthorn Kijsamrej, vice-president of Amata VN said it will spend 700 million baht in Bien Hoa. The Long Thanh site will get 1.3 billion baht and the Ha Long one will invest 700 million baht.

Moreover, Amata VN will spend another 350 million baht for land expropriation in Long Thanh after Vietnam’s government transfers the land to the company.