US-based Dow Chemical, a leading chemical and plastics manufacturer, has announced its intention to apply for Board of Investment (BoI) incentives based on US$900 million (Bt32.28 billion) it plans to invest in Thailand.

"Thailand's political uncertainty has not affected our business' expansion plans, because we believe it is a short-term problem that will not negatively affect our investment," chairman and CEO Andrew Liveris said after meeting yesterday with Deputy Industry Minister Piyabutr Cholvijarn at the Industry Ministry.

Liveris said $408 million would be spent on construction of a propylene oxide and propylene glycol plant. Another $350 million will be invested over the next five years in a joint venture with the Siam Cement Group to construct a facility that will make use of a by-product from the plant.

He said the company would reveal how the remaining $142 million would be spent in next year's first quarter.

Liveris was appointed honorary investment adviser to the BoI

in June. His duties in that role involve encouraging leading international companies, particularly those from the US, to invest in Thailand.

During his current visit, Liveris also met with Prime Minister Surayud Chulanont to be briefed on the current government's economic policies. During that meeting, Liveris reportedly told Surayud that Dow Chemical was committed to making Thailand a major production base for its Southeast Asian operations.

Piyabutr said after yesterday's meeting that the current government would continue to place a high level of importance on foreign direct investment. He also insisted the government would do its best to keep the market system free and fair for investors.

Liveris said Dow Chemical explained its investment

plans during the meeting with Piyabutr, as well as its intention to apply for investment privileges with the BoI.

"As Thailand is our main production base in the Southeast Asian region, we have continued to expand our investment here," he said, adding that the company had not yet decided whether it would seek further joint investments in the Kingdom next year.

Dow Chemical first invested in Thailand in 1967. Since then, it has spent more than Bt50 billion in the Kingdom, including Bt9.85 billion in joint investments with the Siam Cement Group.

Dow Chemical's worldwide sales last year totalled $46.39 billion.

Chalida  Ekvitthayavechnukul

The Nation