Thailand’s energy conglomerate PTT Plc plans to sell down its stake in Horizon Plus, a local battery electric vehicle (BEV) joint venture set up in 2022 with Lin Yin International Investment Company, a subsidiary of Taiwan’s Hon Hai Precision Industry Company – also known as Foxconn.
According to local reports, PTT has decided to reduce the 60% stake in Horizon Plus held by its subsidiary Arun Plus to 40%, allowing its Taiwanese partner to take managerial control of the joint venture with a 60% stake.
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The divestment is expected to be completed by June 2024, which will result in a THB 5.1bn (US$147m) reduction in Horizon Plus’ paid-up capital.
Horizon Plus had planned to complete the construction of a BEV plant in Chonburi province with an annual production capacity of 50,000 units by 2024, but construction is understood to have been put on hold. PTT is said to have decided to reduce its stake in Horizon Plus due to rising competition from the growing number of Chinese automakers entering the Thai BEV segment.
The Thai government is offering investment incentives for companies planning to establish BEV manufacturing operations in the country, with a requirement to export a minimum quota to overseas markets.
PTT’s CEO Kongkrapan Intarajang said his company plans to focus its efforts on expanding its EV charging network in the country.
