PTT and Hon Hai celebrate milestone with a joint venture to establish a fully integrated electric vehicle production in Thailand, ready to promote the country as ASEAN's EV hub
The new automotive manufacturing plant will potentially root in ECC, including production system, supply chain management, and engineering research and development center. The investment worth 1-2 billion US dollars will support the direction of the future energy transition, accelerate economy and investment, and correspond with Thailand’s policy to promote the innovative electric vehicle industry.
Mr. Supattanapong Punmeechaow, the Deputy Prime Minister and Minister of Energy of Thailand, presided over the Virtual Signing Ceremony of a Joint Venture Agreement for the Development of Electric Vehicle (EV) Production in Thailand between PTT Public Company Limited (PTT) and Hon Hai Precision Industry Co., Ltd. (Hon Hai/Foxconn). The local automotive industry's transition to modern EV technology will be strengthened with Foxconn's innovation in production and development of the EV platform together with PTT Group's knowledge in Thai business operation, allowing the country's manufacturing industry and economy to grow and increasing the country's stance among international competitors.
Mr. Auttapol Rerkpiboon, President and Chief Executive Officer of PTT Public Company Limited (PTT), announced that PTT, through its subsidiary ARUN PLUS Co., Ltd. (ARUN PLUS), plans to develop the complete EV value chain by leveraging the energy business of PTT and affiliates. Following the signing, a joint venture company will be formed. The Original Equipment Manufacturers (OEMs) in Thailand are more than welcome to participate in an end-to-end operation including designing, manufacturing, assembling EVs, and producing major parts such as battery platforms, drivetrains, and motors. The 5-6 year investment plan will commence with constructing a new plant, potentially located in the Eastern Economic Corridor (EEC) area and setting up a production system, supply chain management, and an engineering research and development center with an investment worth 1-2 billion US dollars.
The plant will produce entire EVs with Foxconn's advanced technology covering a complete hardware and software platform that will significantly reduce the design development duration and the cost of EV manufacturing while increasing EV market competitiveness. It will take approximately 2-3 years to set up and start with an initial manufacturing target of 50,000 cars/year into the market in the first phase and will extend to 150,000 cars/year in the coming future.
"This joint venture will stimulate national investment as well as enhance Thai people's skills and vocations. Following the success in the first phase, we will expand the investment further. This initiative will not only help increase business potential on the world stage, but also respond to the government policy and direction of promoting electric vehicles, which intend to accelerate the electric vehicle industry to be one of the outstanding S-Curve industries, driving Thailand to further achieve greenhouse gas reduction targets." added Mr. Auttapol.
“Our belief in innovation has always been a core value at Hon Hai and it is evident that PTT shares the same DNA as us, truly making them our ideal commercial partners. The ASEAN EV market is primed for exponential growth and together with PTT, we are confident that we would be able to create infinite possibilities for Thailand's new energy vehicle industry. We look forward to this next phase of our partnership with PTT and believe this joint venture will propel us further in the realization of Thailand 4.0.” said Mr. Young Liu, Chairman and CEO of Hon Hai.
The signing ceremony included Mr. Auttapol Rerkpiboon, President and Chief Executive Officer of PTT, and Mr. Young Liu, Chairman and CEO of Hon Hai, co-signed the agreement, while being honored by Prof. Dr. Thosaporn Sirisumphand Chairman of PTT, Mr. Narit Therdsteerasukdi, Deputy Secretary General of the Thailand Board of Investment, Dr. Luxmon Attapich, Deputy Secretary General of the Eastern Economic Corridor, Ms. C.L. Huang, General Chief Financial Officer of Hon Hai Technology Group, Mr. David Huang, Chief Financial Officer of Hon Hai, and Mr. C.C. Lin, GM of Hon Hai E Business Group, along with government officials and business executives as witnesses.