The SET-listed Rojana Industrial Park Plc will inject an initial amount of 2.5 billion baht into its 50:50 joint venture with Italian-Thai Development Plc (ITD) to develop the first phase of Dawei Industrial Estate in Myanmar.
Somchet Thinaphong, managing director of Dawei Development Co (DDC), said the first phase of 3,000 square metres requires 5 billion baht to develop, excluding the cost for infrastructure such as a power plant.
Under the agreement, Rojana will hold half of the special purpose vehicle (SPV) for Dawei Industrial Estate with the balance held by ITD, Thailand's largest contractor, which was granted a concession to develop the special economic zone (SEZ) and a deep-sea port in Dawei.
The first phase will be ready to operate by the end of this year, serving mainly light industries, he added. Strategically located on 127,000 rai, Dawei Industrial Estate will be an influential platform for booming investment in Southeast Asia, said Rojana's managing director Jirapongs Vinichbutr.
"Considering the great opportunities arising from the continued growth of investments in Asean, we agreed to join ITD to establish a development company for the Dawei Industrial Estate," he said.
Development will be divided into different phases with target customers the auto parts, textiles and garments, electronics and electrical, para rubber products, rubber and wooden furniture, plastics, construction materials and equipment, leatherwork and seafood industries.
"The approaching Asean Economic Community has added greater flexibility to the industrial sector. Therefore, we decided to keep pace with these changes and investor needs by expanding in our neighbouring countries," said Mr Jirapongs.
Foreign investors are keen on Myanmar, in particular the Dawei area which is considered an important gateway linking rapid logistics systems to Western countries, he added.Mr Jirapongs said the operation and marketing of the Dawei estate is expected to commence by year-end, while buyers can begin their construction in early 2014.
Shares of ROJNA closed Monday on the SET at 8.80 baht, unchanged, in trade worth 17.40 million baht.