Asahi seeks cost breaks

Japan-based Asahi Glass has requested the Thai government to ease its energy expenses in support of expansion plans that would make Thailand its manufacturing hub.

Industry Minister Mingkwan Sangsuwan said he had met executives of Asahi Glass (Japan) who were seeking incentives focused on electricity and other energy costs _ a major expense in glass manufacturing _ to assist expansion of its 24-billion-baht facilities in Thailand.

Mr Mingkwan said energy-related incentives were a good idea that could attract investors to Thailand.

"While they wanted to know clearly the Industry Ministry´s policies, I told them that I will see if the government can better manage electricity and labour costs," he said.

However, he added that he was still considering incentives cautiously.

Atchaka Brimble, the director-general of the Office of Industrial Economics, also joined the meeting.

She said Mr Mingkwan had asked Asahi Glass (Japan) to persuade more Japanese investors to relocate plants here.

"Mr Mingkwan believes that if we can manage energy costs better, Thailand will be a more attractive investment destination than other countries in the region," Mrs Atchaka said.

Asahi Glass currently operates seven plants in Thailand with a total asset value of 78 billion yen (24 billion baht).

Asahi Glass (Thailand) manufactures and supplies glass sheets, automobile components and electrical appliance parts for local industries and the export market.