October 14, 2008

Japanese auto and steel makers keen to invest in Thailand

Mr Kosit Panpiamras deputy prime minister & industry minister of Japan after meeting top executives of Nissan and the Nippon Steel Corporation told reporters that Japanese top carmakers and steel conglomerates are keen on investing in Thailand despite short term factors including oil price.

The minister expressed his view that the companies are long term investors who look beyond the host of short term volatilities. He said that Nippon Steel is interested in upstream activities of steel production, which is what Thailand wants.

Mr Kosit said the National Economic and Social Development Board has been assigned to prepare a detailed plan to develop the upstream steel industry in Thailand, most likely to be located along the southern seaboard development zone spanning the provinces of Chumphon in Surat Thani and Nakhon Si Thammarat. He emphasized that any detailed plan resulting from NESDB work will undergo a public hearing process involving the public, in order to avoid setbacks experienced.

Mr Kosit also emphasized the high value and long term benefits of these two potential investment projects. He indicate that "In the eco car segment, we are confident that at least two companies are prepared to put THB 15 billion into Thailand and more should follow. As for upstream steel production, the potential investment could be worth over three billion dollars.”

Top executives of Nissan Motors meanwhile inquired about incentives for investment in environment friendly vehicles, the so called eco car project.