Thailand’s leading manufacturer of leather-finished products Chai Wattana Tannery Group (CWT) has entered into a joint venture with its partners to set up an automotive seat cover manufacturing plant in Cambodia.
The plant requires the investment of 250 million baht ($7.35 million).
CWT’s managing director Weerapon Chaiteerath said that this investment would serve the growth of automotive industry in Thailand and overseas.
“The plant is located in Sanco SEZ Industrial Estate, which is only six kilometers from the border between Thailand and Cambodia. Therefore, it is very convenient to transfer goods to Thailand, while the production cost in Cambodia is much cheaper,” he said.
The plant construction is scheduled to be completed by the early 2016 and it will commence operation in the mid of the same year. The company has not disclosed the production capacity in the early stage, but plans to expand the capacity continuously to hit its target of at least one million units by 2019.
Meanwhile, CWT’s shareholders have approved the company’s plan to co-invest in Thailand’s first waste-to-energy plant with Zero Waste Co Ltd and Lawi Engineering (Thailand) Co Ltd. This 10-megawatt power plant will require the investment of 1.469 billion baht.
Weerapon added that this would be its first step to diversify into the renewable energy business, which would create sustainable income for the company in the long term.