Rojana ratchets up revenue outlook to B10bn via EEC

SET-listed industrial developer Rojana Industrial Park Plc has increased its revenue target for 2018 to 10 billion baht, up from 8 billion, thanks to the Eastern Economic Corridor (EEC) scheme’s expected boost to demand for industrial land.

Rojana is waiting for the Industrial Estate Authority of Thailand to approve new licences for management and development of industrial zones in the EEC provinces, including two zones: 843 rai in Laem Chabang, Chon Buri and 2,000 rai in Nong Yai, Rayong.

Chaipon Phornphiboon, assistant vicepresident of Rojana, said the company is confident that the much-touted EEC scheme can attract investors to buy plots in the three provinces of Chachoengsao, Chon Buri and Rayong.

“We expect to receive the licence around the third quarter,” he said. “We believe the EEC project can be a key magnet for local and foreign investors because Thailand has high potential in Asean, linking with other regional countries and global markets.”

Rojana plans to spend an investment budget of 7 billion baht for industrial development and purchases of new land during 2018-19 to serve the EEC.

Pakin Poonnakasemkit, Rojana’s project manager, said the company expects land sales to reach the target of 400-500 rai this year.

“Rojana has mainly Japanese investors, totalling 70%, while local investors represent 20% and Chinese firms make up the remainder,” Mr Pakin said. “Mostly they operate manufacturing plants for electronics, auto parts and the food and drink sector.”

Chinese investors are increasing at Rojana industrial parks because China’s government policy aims to push its One Belt One Road initiative to expand across the region.

Rojana has total developed land of 4,500 rai in Ayutthaya, Prachin Buri, Chon Buri and Rayong.

The company is working on industrial development for its Ayutthaya Phase 10 on 700 rai, the Bowin Phase 2 on 700 rai and Nong Yai on 2,000 rai.

The company is focused on the domestic market, specifically the EEC areas, led by the government’s policies and the recent EEC Act, which the government believes will attract more investors.

Rojana has no plans to invest in Cambodia or Vietnam.

In Myanmar, the industrial estate in the Dawei project was delayed beginning a few years ago.

Rojana started a joint venture for Dawei with Italian-Thai Development Plc, each owning 50%, with a total budget of 20 billion baht for the first phase of 20,000 rai.