Singha Estate unveils eco-industrial estate masterplan, ‘S Angthong’ With ‘World Food Valley’, the special zone for food and related businesses

BANGKOK – 27 June 2022 – Singha Estate Public Company Limited launches ‘S Angthong’ the company’s eco-industrial estate project for food and related businesses. The project is set out to be World Food Valley, coinciding with the company’s vision on sustainable development, ‘Enriching Tomorrow,’ where shared values and sustainability are created for all through the circular economy and businesses that are beneficial to the environment, the community, and the society. The project is expected to recognize its first stream of revenue within this year; while the project is expected to be sold out within six years, generating over THB4,700 million, as well as recurring income up to another 150% in the long run.

Mrs. Thitima Rungkwansiriroj, Chief Executive Officer of Singha Estate Plc, or “S”, said, “the company has operated the real estate development business since 2014 and has continued to grow consistently through the business diversification and integration strategy across the four core business portfolios. As a result, Singha Estate has been able to generate consistent returns. Currently, the company operates four core businesses both in the domestic and international markets, which are the residential business, hospitality business, commercial business, and our latest investment, industrial estate, and infrastructure business.

Singha Estate’s industrial estate and infrastructure business comprises three parts:

1. Infrastructure business:  Covering power generation business, energy, engineering services, service providing, and innovation-related businesses.         
2. Power plant business:  Under a joint-venture deal, Singha Estate will operate three power plants with more than 400 MW capacity, with licensing 270 MW, or around 70% being under the 25-year-term power purchase agreement with the Electricity Generating Authority (EGAT). The company will recognize the revenue through profit-sharing with a business partner.
3.  Industrial estate business:  Build industrial estate that generates sustainable growth for the customers, the community, and the society at large, and uplifts the economic capability

Mrs. Thitima added further regarding the eco-industrial estate that Thailand is now able to turn a COVID crisis into an opportunity as the whole world is coping with the food crisis. Under the support of the Ministry of Industry, Thailand has become among the top ten food exporters o the world, 

At the moment, What Thailand needs is an industrial estate specially designed to support food manufacturing as well as its related businesses. Singha Estate has foreseen such an opportunity and decided to enter the industrial estate business. We also foresee Angthong as the strategic location, considering that it is the central connecting point between Thailand’s food and crucial ingredients, which will help the logistics of the food and ingredients from the northern and the upper central parts of Thailand to the distribution centers across the country. Moreover, Angthong is equipped with potential facilities from hospitals, schools, and shopping centers, as well as skilled labor force to fill up the demands of manufacturers. 

As for the development directions of the S Angthong industrial estate project, Mr. Komjohn Leepraphantkul  Managing Director of S.IF. Co., Ltd., added, “The project is designed to respond to the needs of the food manufacturing and its related businesses. Located on the 1,776-rai area along the Asian Highway KM 63, Chaiyaphum sub-district, Chaiyo district, Angthong province, the industrial estate is an hour and a half away from the main airport and logistics seaports. It also provides adequate, stable, and environmentally friendly basic public utility system structures, especially the three co-generation power plants with a total capacity of 400 megawatts, and a 22-kV and 115-kV power supply system that can accommodate entrepreneurs with high power demand and high stability. It also provides other public utilities, such as water supply, natural gas, and alternative energy, including telecommunications network system, 5G system, and high-speed Internet, across all project areas, as well as retail spaces to fully support the industrial production base for customers, their employees, and the public.  Throughout the 1,776-rai area, around 993 rais will be the sale space, another 34 rais will be a commercial area with the full facility, another 148 rais is the public utilities, another 384 rais is the reservoir with the storage capacity of 6.12 million cubic meters of water, and another 393-rai area around the project is allocated for light industrial business zoning. To facilitate the nimble operations for different types of businesses, around 600 rais Is allocated as the zoning for food manufacturing and its related businesses, which is close to steam power sources to support cost-saving for energy consumption.

More importantly, S Angthong Industrial Estate is committed to creating sustainable values for the society and uplifting the quality of life for the surrounding communities, following the company’s Enriching Tomorrow value proposition. The company is building the infrastructure and low-carbon energy that are suitable for the food manufacturing and related businesses:

The low-carbon energy source for climate change mitigation

• Provide an adequate, highly stable power generation system from the three co-generation power plants with a total capacity of 400 megawatts. Around 70% of which is already pre-sold to EGAT, while the other 30% will be generated to meet the needs of customers within the industrial estate. Moreover, the power is generated through the co-generation method to provide a low-carbon electricity source.
• Raw water amounting to more than 6.12 million cubic meters in the 384-rai area is adequate to meet the production needs of customers through the industrial estate. In addition, the ultra-filtration water work system, used to filter particles smaller than 0.1 microns, is also be used to ensure high quality and clean water, most suitable for food manufacturing. 
• High-stability and low carbon steam energy production will also be available for use within the industrial estate.
• Clean energy from the solar cell will also be available as the estate has the spaces ready for creating floating solar in the reservoir, as well as the central areas. The alternative energy can support businesses that planned to be Net Zero in the future and mitigate risk from Carbon Border Adjustment Mechanism (CBAM), which will help companies to reduce carbon emission tax, as well as get access to Green Finance. 

Waste management system for the responsible consumption

• Co-Generation Power Plant technology in the power generating process helps create the minimum waste and reduce carbon emission while providing high-capacity power. 
• Water management system is implemented at its best with minimum impact on the surrounding communities. The system can generate water for manufacturing, as well as treat and recycle wastewater.
• More than 148 rais of green areas help reduce the impact of dust pollution and absorb as much as 148 tons of carbon per year.
• Flood defense system and the 10.5-meter of protection walls above the moderate sea level, along with an efficient drainage system help reduce the impact on the surrounding communities. 

Building sustainable community

• Support the economy and generate revenue for the communities: Upon its completion, there will be more than 5,000 jobs created from the work within the estate, as well as generating incomes for the surrounding communities.
• Create recreational and modern lifestyle spaces, as well as promote the local economy with creative retail and activity spaces on the 34 rais of commercial areas.
• Build a knowledge center for rice farming and promoting local culture, including a sale area for local products.

Apart from the state-of-the-art infrastructure, the commute to and within the industrial estate is highly convenient via four main roads, each 35 meter-wide, carefully designed for high safety. The project is also equipped with FTTx high-speed internet, IoT, and telecommunication system coverage, and the CCTV safety system, while the 148-rai area is set to be the recreational spaces that sustainably enhance the quality of life for the people. 

As for the business direction of S Angthong, Mrs. Thitima added that the company plans to sell out the spaces within the next six years, worth over THB 4 billion, as well as preparing to generate incurring income for another THB 150 million annually. In 2022, the company targets to sell 15% of the total area or around 149 rais, which is worth more than THB 500 million. In addition, the company is planning for revenue recognition from the sale of 78-rai area to B.Grimm Power (Angthong) 2 Limited and B.Grimm Power (Angthong) 3 Limited within the third quarter of this year.

With the overall business rebound post the peak of the pandemic, Singha Estate expects the sale of the industrial estate project to rise further. The survey of the industrial estate land price, especially within Central provinces has shown optimistic signs that the S Angthong eco-industrial estate will provide opportunities for businesses, particularly those in the food and related industries.