The petrochemicals arm of state-owned Thai energy conglomerate PTT and another company have teamed up to establish a centre for making plastic products in a town on the border with Myanmar, the Nikkei Asian Review reported.
PTT Global Chemical and the Saha Group, one of Thailand’s leading consumer products companies, have signed a memorandum of understanding to promote the centre, the weekly magazine reported on November 5.
The MoU, to encourage manufacturers of plastics to establish operations in an industrial park operated by Saha and make products for export to Myanmar, was signed at a ceremony the previous day.
Thailand’s Commerce Minister, Apiradi Tantraporn, said at the signing ceremony that the MoU had paved the way for the establishment of a special economic zone.
The military junta in Thailand has designated Mae Sot and nine other areas on the country’s borders for establishing SEZs before the ASEAN Economic Community 10 takes effect at the end of the year, the NAR reported.
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The AEC is aimed at integrating the economies of the 10 ASEAN members by allowing goods, investment and labour to move freely across their borders.
Saha chairman Boonsithit Chokwatana told reporters after the ceremony that the industrial park could be transformed into an SEZ immediately.
The Mae Sot park, which houses Saha Group garment factories, was established in 2007 and is adequately equipped, Mr Boonsithit said.
“In Mae Sot, we get the benefit of a Myanmar workforce and labour shortages are not an issue,” the NAR quoted him as saying.
The Saha Group says about one third of the plastics products sold in Myanmar are made in Thailand.
