Hong Kong - Prinx Chengshan has entered into an agreement to acquire land plots in Thailand at €22 million (Baht 814 million) for a new plant, the company announced 25 Dec.
According to the statement on the Hong Kong Stock Exchange, the transaction involves seven land plots in Tambon Nong Suea Chang, Amphur Nong Yai, and Tambon Klong-Kew, Amphur Ban-Bung, Chonburi province.
The total area was listed at up to 480,000 sqm, though the final figure is still pending local government confirmation, said the announcement.
Land will be purchased by affiliate Prinx Thailand from WHA Eastern,Thailand's industrial real estate developer and supplier of supporting infrastructure services such as power, water and utilities.
Prinx Thailand has also signed a water services agreement with a WHA Eastern subsidiary.
Prinx Chengshan had previously mulled Malaysia as its overseas site but has been informed by its controlling shareholder Chengshan Group that the project was discontinued due to slow progress.
The tire maker believes that the Thai site offers low costs for raw materials and transportation, avoids international trade barriers.
Other benefits include local preferential policies on areas such as taxes and human resources, added the announcement.