Thailand BOI Approves Investment Worth USD1.54 billion in Biochemicals, Data Centers, and Hospital; Sets New Promotion Category for the Repair of Used EV Batteries and ESS


June 14, 2024

The Thailand Board of Investment (BOI) today approved the investment promotion applications of eight large projects worth a combined 56.95 billion baht (USD 1.54 billion), including a bio-ethylene plant project by the local joint venture of Brazil’s Braskem, as well as data centers, power plants, and a major new hospital.

The meeting, which was chaired by Mr. Pichai Chunhavajira, Deputy Prime Minister, Minister of Finance, and Chairman of the BOI, also approved the introduction of a new investment promotion category covering service centers for the repair, repack, and reuse of used electric vehicle (EV) batteries and energy storage systems, that further complements the BOI’s comprehensive EV supply chain policy and incentives. Another new category was approved to support the data hosting business, to match the rising demand for this type of activity and complement the investment incentives already offered to support the development of the digital industry. The Board also approved a new promotion package for Quarantine Facilities for Animals for export to help improve quarantine and certification services for international trade of livestock.

“The applications approved today are large investment project by both foreign and local investors in key target industries of importance to the Thai government and the future development of the economy, such as projects helping to protect the environment and supporting the country’s digital transformation,” said Mr. Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI), after the board meeting. 

The Board also approved new incentives for automotive parts makers investing to upgrade their technological level and improve their productivity, and/or invest to transition their operations to serve new industries, such as the medical equipment or aviation sectors.

Project Approvals

– Braskem Siam Co., Ltd., a joint venture between Braskem, the leading global biopolymer producer, and Thailand’s SCG Chemicals PCL, received approval for a 19.3 billion baht investment to build a plant to produce up to 200,000 tons/year of bio-ethylene (or green-ethylene) from bio-ethanol from agricultural products such as sugarcane, cassava, and corn. The plant will be located in Map Ta Phut Industrial Estate, Rayong province. Bio-ethylene is used to make a variety of environmentally friendly products, from packaging for food and beverage to personal and home care products, toys, houseware, and plastic bags.

– The Board approved two large data center projects, aiming to support the economy’s digital transformation, and the fast-increasing demand for cloud computing, IoT and AI:

– A multinational company headquartered in the United States received approval for a 7.19 billion baht investment in a data center in Samut Prakan province.

– True Internet Data Center Co., Ltd. received approval for a 3.35 billion baht investment to expand one of the company’s four existing data centers, which is located at the True IDC East Bangna Campus, also in Samut Prakan province.

– Bumrungrad International Hospital Phuket Co.,Ltd. received approval for a 4.96 billion baht investment to build a 212-bed hospital and Advanced Diagnostic Center. The project aims to attract foreign medical tourists to Phuket, which is Thailand’s main international tourism hub.

– National Power Plant 12 Co.,Ltd. received approval for a 9.4 billion baht investment to build a plant to produce electricity and steam from biomass fuels, such as black rubber oil, a by-product of the paper pulp production process. The plant, which will have a production capacity of 130 megawatts of power and 576 tons/hour of steam, will be located in the 304 Industrial Park in Prachinburi province.

– The SCG Group received approval for a 6 billion baht investment in a cogeneration power plant with a production capacity of 130 megawatts of power and of 160 tons/hour of steam. The plant will be located in Map Ta Phut Industrial Estate, Rayong province, and will serve electricity to factories in the industrial estate.

– Super Earth Energy 8 Co.,Ltd., received approval for a 2.86 billion baht investment to build a plant to produce electricity from waste. The plant, which will have a 20 megawatts capacity, will be located in Nonthaburi province.

– Thai Lion Mentari Co., Ltd., the operator of Thai Lion Air, received approval for a 3.89 billion baht investment to acquire 10 aircraft, representing a total passenger capacity of 2,072 seats, total cargo capacity of 84.60 tons.

Support to Thai Startups

Also today, a meeting of the Commission on the National Competitiveness Enhancement for Targeted Industries Policies, for which the BOI acts as the secretariat, approved measures to promote high potential startup enterprises operating in target industries from the Pre-Series A to Series A level. Qualified Thai startups with high growth potential may receive cash support ranging from 20 to 50 million baht in the form of matching funds. The policy aims to help increase the country’s competitiveness and help foster an economy driven by technology and innovation.

Source: Thailand Board of Investment