INVESTMENT / NEW STRATEGY AND PROJECTS

BoI pushes for biotechnology, R&D projects

YUTHANA PRAIWAN

The Board of Investment (BoI) is moving aggressively to promote biotechnology and research and development projects to encourage industries to enhance their competitiveness. Projects will be offered an eight-year exemption from corporate income tax without capital restriction and will be allowed to be based in any BoI promoted zones. If the project was located in a science park, it would receive a 50% reduction of corporate income tax over five years, according to BoI secretary-general Sathit Chanjavanakul.

The board will also promote R&D projects to encourage small and medium-sized enterprises to invest in R&D activities. Projects will receive exemptions from duty on R&D machinery and equipment imports and exemptions from corporate income tax for three years of 70% of total investment and spending on R&D activities, but not exceeding 10 million baht.

Industries entitled to privileges must use indigenous raw materials or local content and must be 51% Thai-owned.

In another development, the board will support shipbuilding and repair ventures to relocate to BoI-promoted Zones 1 and 2 from just Zone 1 at present. Ventures will receive an eight-year exemption from corporate income tax and duty on machinery imports. Eligible ventures must be capable of building and repairing ships of 500 tonnes.

The board is also promoting logistics projects, including logistics parks, to increase efficiency and accommodate integrated trade and exports to help enhance internal competitiveness. Projects eligible for privileges must have land area for logistics activities of at least 200 rai, invest in warehouse space for rent or sale of at least 50,000 square metres, and be located no more than 50 kilometres away from a port, airport, border customs and export processing zones. Projects will receive an eight-year exemption from corporate income tax and duty on machinery imports regardless of zone.

Six major projects worth a combined 70.47 billion baht also received BoI approval yesterday. They were:

FA gas separation plant proposed by PTT Plc and worth 29.43 billion baht. The plant, located in Rayong, would process 960 million cubic feet per day of gas.

FA 25.61-billion-baht LNG receiving terminal proposed by PTT LNG Co. The facility, in Map Ta Phut Industrial Estate, Rayong, would handle 5.75 million tonnes per year of LNG.

FA 12.2-billion-baht upstream, intermediate and downstream steel project proposed by Siam Yamato Steel Co. The plant, located in Hemaraj (Eastern) Industrial Estate, Rayong, would have capacity to produce 200,000 tonnes per year of blooms and billets and 500,000 tonnes per year of shaped steel.

FA 362-million-baht lead ingot and lead alloy project proposed by Bergsoe Metals Co. The plant, located in Saraburi, would have capacity to produce 22,000 tonnes of lead ingots and 8,000 tonnes of lead alloys by using used batteries as raw materials.

FA 1.5-billion-baht ethanol project proposed by Impress Technology. The plant, located in Chachoengsao, would produce 71 million litres per year of ethanol to supply PTT.

FA 1.37-billion-baht ethanol project proposed by Supthip Co. The plant, in Lop Buri, would produce 66 million litres per year of ethanol for PTT and Caltex.

Bangkok Post
Friday February 02, 2007