BoI mulls incentives for smelters
The Nation – 17 November 2008
CHALIDA EKVITTHAYAVECHNUKUL
The Board of Investment (BoI) will discuss detailed incentives for upstream steel-smelters at its special conference today, in a move to push ahead with the delayed plan to lure huge investment to the Kingdom.
Four steelmakers have written expressing interest in such investment. They are Nippon Steel, JFE Steel, Arcelor Mittal and Baosteel.
Each project is expected to attract at least Bt100 billion in investment. However, there has been no progress as the government has failed to specify an appropriate location to accommodate the smelters, for fear of resistance from local communities concerned about pollution.
"It is necessary to clarify the incentives and other details such as specific areas, burden of infrastructure development and benefits to the community. This will assure the steelmakers and local communities about what they will get out of these investments," said Iron and Steel Institute director Wikrom Vajaragupta.
Although Sahaviriya Group will likely move its planned investment to another country, he is confident that Japanese steelmakers Nippon and JFE will carry out their projects here.
Meanwhile Industry Minister Pracha Promnok has told the BoI to propose additional measures to promote mega-investment projects.
In a period of economic recession, every country has to compete to lure foreign investment by offering attractive incentives and developing the necessary infrastructure and utilities for them, he explained.
"We [the government] are considering other incentives besides tax deductions to attract large investments in the next couple of years. For example some countries provide land for mega-projects that have an environmental impact," said Pracha.
He said the Industry Ministry would help Sahaviriya Group come to terms with the local community over setting up a blast furnace in Prachuap Khiri Khan's Bang Saphan district.
"Sahaviriya's blast furnace will reduce imports of upstream steel and secure raw material for related industries such as automobiles and electronics," he said.
Monta Pranootnorapal, governor of the Industrial Estate Authority of Thailand, said it would be almost impossible to build blast furnaces, given the resistance.
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