Milbank LLP represented PTT Public Company Limited (“PTT”), the Thai national energy conglomerate and largest listed company in Thailand, as a majority partner in the 60:40 joint venture partnership with Hon Hai Precision Industry Co., Ltd. (“Foxconn”), a leading global electronics manufacturer. The joint venture will establish an electric vehicle production, supply and research and development facility in Thailand.
PTT and Foxconn are anticipating an equity investment between US$1 to $2 billion over the next five to six years. The facility, which will be located in Thailand’s Eastern Economic Corridor, the country’s advanced development zone, is expected to scale production to yield up to 150,000 cars a year.
This joint venture will offer an electric vehicle platform, which includes hardware and software components to other original equipment manufacturers in Thailand. It will supplement the ongoing effort in the nation to support the global transition to electric vehicles by accelerating the rate of design development and simultaneously reducing the cost of electric vehicle manufacturing in Thailand.
“We’re honored to be a part of this significant moment for the development of, and transition to, electric vehicles in Thailand, furthering the country’s position as the leading automobile manufacturer in Southeast Asia,” said Jacqueline Chan, partner in Milbank’s Singapore office. “PTT is committed to sustainable growth in the region, and we are proud to support PTT and our other clients as they strive to meet their goals.”
Registration for the partnership is expected to close in the fourth quarter of 2021 or the first quarter of 2022. Plans for the project were announced in May 2021, when the Prime Minister of Thailand attended the signing of the memorandum of understanding.
David Zemans, managing partner of Milbank’s Singapore office, added: “Thailand has set a 20-year strategy to roll out more sophisticated technology to achieve sustainable development, and this joint venture will be a key part of that plan. This is an exciting time for the Southeast Asia region as it continues to attract investment, and we are looking forward to continued collaboration with our clients to further their goals and the area’s transition to clean energy.”
The Milbank team was led by Singapore partners Jacqueline Chan and David Zemans with Hong Kong partner James Grandolfo, Singapore associate Hua Chan and London partner Joel Harrison. The team also had support from Munich partner Alexander Rinne and Washington associate Javier J. Ramos.