THURSDAY, March 28, 2024
nationthailand

China’s Trina Solar invests $200 million in Rayong factory for exports

China’s Trina Solar invests $200 million in Rayong factory for exports

THE WORLD’S largest manufacturer of photovoltaic modules, Trina Solar, has invested US$200 million (Bt7 billion) in a factory in Thailand to increase its export volumes to the United States and European and Asean countries.

The Chinese corporate, which is also listed on the New York Stock Exchange, selected Thailand as the largest overseas recipient of its investment for three reasons. First is the strong relationship between Thailand China, second is the clear regulations and incentives to support foreign investors, and third is its partners, including financial institutions, said Jifan Gao, chairman and chief executive officer of Trina Solar. 
The plant in Rayong province is operated by its subsidiary Trina Solar Science & Technology (Thailand), with registered capital of Bt2 million, to produce solar cells and PV modules.
Gao said the Rayong plant would have 10 per cent of the total production capacity of the Trina Solar group.
China Minsheng Bank and Siam Commercial Bank have provided a syndicated loan of $100 million for the manufacturing facility. SCB has set aside additional financing of $43 million for working capital.
Arthid Nanthawithaya, SCB chief executive officer and deputy chairman of the executive committee, said the arrival of the world’s largest solar-module operator would encourage the mood of foreign direct investors, which Thailand needs after losing FDI market share to some other countries in Asean.
Thailand has a full banking system to help support FDI, which means it does not only provide credit but the banks have to understand business management for its customers, he said.
To draw FDI, Thailand has to show Chinese investors that previous investment by Chinese companies had been supported by local financial institutions and Thai-Chinese associations, Arthid said.
The second- and the third-largest producers of solar cells in China are also interested in investing in Thailand, he said, adding that more than 10 Chinese companies in renewable energy, rubber products and infrastructure were also keen to establish plants in Thailand.
So far, SCB has extended close to Bt15 billion in financing to Chinese corporates, and it plans to double that amount in three years.
SCB has focused on Chinese inbound investors in Thailand and Vietnam, where it has a branch in Ho Chi Minh City. The bank believes Vietnam will play a critical role in its international banking activities in the future. At present, loan booking from international clients has been seen in its branches in Hong Kong and Singapore.
Chinese and Vietnamese inbound investors will be crucial supporters for SCB’s international banking, which it hopes will be providing 10 per cent of total loan portfolio within three to five years. 
As of last month, SCB had a loan portfolio of Bt2.28 trillion.
SCB recently provided a credit line of Bt18 billion to finance the hotel |and retail arm of Charoen Sirivadhanabhakdi’s TCC Group.
Arthid said the bank was thinking seriously about how to help small and medium-sized enterprises that have not recovered yet from the economic slowdown. 
He added that the bank was considering increasing its loan loss reserve to shore up its coverage ratio from the current 100.8 per cent. 
 
nationthailand