Tuesday, November 24, 2020

Bangchak to decide on bio-hub location in two months

Nov 08. 2019
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Bangchak Corporation is expected to finalise the location of its bio-hub in the next couple of months, the company’s president and chief executive officer, Chaiwat Kovavisarach, said on Thursday (November 7).

The hub will add value to its existing bio-business, he said.

The bio-hub is expected to focus on the production of food, bio-materials and bio-cosmetics. Commercial production is expected to begin in the next three years.

Previously, the company had planned to set up the hub in the Eastern Economic Corridor (EEC) in order to enjoy tax privileges. However, as investment in a bio-hub qualifies for tax privileges, the management thought it better to establish the hub close to the source of raw materials.

He added that the government should also take steps to boost consumer demand for bioproducts, if the government wants to successfully promote its bio-hub investment policy.

Bangchak’s subsidiary BBGI will invest in the proposed bio-hub. The subsidiary is expected to be able to list on the Stock Exchange of Thailand late next year.

The listing will be postponed to 2021 if the stock market situation is unfavourable. The proceeds from the listing will be used to finance the creation of the bio-hub and expand the capacity of its biodiesel plant. This will serve the government’s promotion of B10 biodiesel for vehicles.

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