PM courts German heavyweights for EEC
Manufacturers targeted for scheme
Prime Minister Prayut Chan-o-cha met yesterday with executives of German companies Daimler AG, Draxlmaier Group, BMW AG and Verband der Bahnindustries in Deutschland in an effort to lure them to invest in Thailand.
The premier also visited Fraunhofer Institutes for Production System and Design Technology (Fraunhofer IPK), which the government hopes will establish a subsidiary office in its flagship Eastern Economic Corridor.
The Thai government also aims to persuade German firms to bid for developing the high-speed rail projects and manufacturing electric trains in Thailand.
The Board of Investment (BoI) on July 25 granted investment privileges to BMW Group Thailand for the production of plug-in hybrid electric vehicles (PHEVs) worth 700 million baht in Rayong province, where the plant is wholly owned and operated by BMW Group Manufacturing Thailand.
The BoI-approved project is an expansion of BMW’s existing assembly line at Amata City Industrial Estate for PHEVs.
The company said yesterday it wants to develop local high-voltage battery production to yield battery modules and batteries from 2019. BMW’s new production facility is located in WHA Chonburi Industrial Estate 2.
On March 27, the BoI also approved the requests of Mercedes-Benz to assemble PHEVs worth 607 million baht and lithiumion batteries worth 600 million.
After winning privileges for two related projects, Mercedes-Benz Thailand said recently it is studying the possibility of applying for BoI incentives for battery EVs.
A BoI source who requested anonymity said Mercedes-Benz is also interested in building charging stations in Thailand to accommodate the expansion of PHEVs and the company’s electric cars in the future.
The source said the German firm is keen on producing electric trucks in Thailand and it has already purchased land at Amata Nakorn Industrial Estate in Chon Buri for the project.
According to a Bank of Thailand report, there are 600 foreign companies investing in Thailand. In 2017, Germany ranked as the seventh-largest investor in Thailand with a total investment of US$338 million (11.1 billion baht), mainly in manufacturing, chemicals, fixing automotives and motorcycles, and property business.
Germany is Thailand’s largest European trade partner.
Two-way trade between Thailand and Germany amounted to $10.99 billion in 2017. Imports accounted for $6.07 and exports from Thailand were worth $4.92 billion, resulting in a trade deficit for Thailand of $1.14 billion.
In the first nine months this year, twoway trade totalled $9.13 billion, up 10.8% from the same period last year.
Exports accounted for $3.92 billion and imports amounted to $5.20 billion.
Thai investment in Germany during 2007-17 was $5.38 billion. Thai investors included Central Group, Thai Union Group, Charoen Pokphand Group, Kasikornbank and Siam Cement Group.
Major exports from Thailand include jewellery and ornaments, computers and components, electrical circuits, automotive and auto parts, and rubber products. Major imports were machinery and components, automotive and auto parts, chemicals, electrical machinery and components, and pharmaceuticals.
Nathporn Chatusripitak, an adviser to the prime minister, said the government is looking for cooperation in science, technology, innovation, water management, disaster crisis management, infrastructure and bioeconomy.