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Thailand approves $1 billion Foxconn-PTT venture for BEVs

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BANGKOK (Reuters) - Thailand's investment agency on Monday approved a joint venture worth 36.1 billion baht ($1.04 billion) between Taiwan's Foxconn and Thailand's PTT to produce battery electric vehicles (BEV).

The Horizon Plus Co project is one of several investment applications worth a total of 209.5 billion baht in manufacturing and infrastructure that were approved on Monday, the Board of Investment (BOI) said in a statement.

"The joint venture project will support investment in the EV industry and build up on the policy to become Southeast Asia's EV manufacturing hub," BOI chief Duangjai Asawachintachit said.

The approved projects also included a 162.3 billion baht investment by CP Group's Asia Era One Co in a high-speed rail project connecting the three airports located in Bangkok and the Eastern Economic Corridor.

The BOI also approved enhanced benefits for investments in EV battery production for both existing and new projects, including a 90% reduction of import duty on raw and essential materials for five years in case the output is sold domestically.

($1 = 34.77 baht)

(This story corrects headline and paragraph 1 to make clear venture is for vehicle production, not battery production)

(Reporting Kitiphong Thaichareon and Satawasin Staporncharnchai; Editing by Kanupriya Kapoor)

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