A comprehensive 5-year investment plan (2016-2020) of THB 43 Billion to reach the strategic objectives of its four business hubs
Bangkok, August 9, 2016 – The WHA Group announced today a broad 5-year investment plan of THB 43 billion to support its strategic objective of becoming the leading provider for comprehensive logistics, real estate and industrial solutions in the Asian Economic Community (AEC).
Following the acquisition and merger with Hemaraj Land And Development Plc., the WHA Group is geared towards business expansion both in the domestic and overseas markets, such as Indonesia, Vietnam, Myanmar, Cambodia and Malaysia. In Thailand, WHA sees strong opportunities with the government’s initiative to develop the Eastern Economic Corridor (EEC) in the provinces of Chachoengsao, Chonburi and Rayong. The Group’s four core business hubs, namely Logistics, Industrial Development, Utilities & Power and Digital Platform are perfectly in line with the EEC’s objectives to provide an innovative digital platform and smart facilities to facilitate the emergence of new industrial super clusters.
“The WHA Group is now poised to support and enhance the EEC initiative,” said Ms Jareeporn Jarukornsakul, WHA Group Chief Executive Officer. “Through Hemaraj, we play an instrumental role in the development of the automotive, electronics and petrochemical clusters, and we are now committed to be an active partner in the development of future industries such as digital, aviation, robotics, biofuel, biochemicals and health,” she added.
Logistics hub to receive THB 14 billion as part of planned investments
Its historic core business with the Built-to-Suit (BTS) concept, WHA’s logistics hub will benefit from planned investments representing about THB 14 billion over the 5-year period. These investments will enable the group to further develop its logistics activities both locally and overseas.
In Thailand, WHA Logistics will focus on two main goals. First, it will continue to develop high-value rental properties, including built-to-suit warehouses (BTSW), built-to-suit factories (BTSF), warehouse farms combining built-to-suit and ready-built facilities, built-to-own (BTO) customized warehouses or factories and built-to suit offices.
Secondly, it will support and capitalize on the government’s policy to establish new super clusters as part of its plan for the Eastern Economic Corridor (EEC). “The WHA Group is looking forward to being part of the emergence of new industrial and service clusters in the Eastern Seaboard,” commented Ms Jareeporn. “We intend, for instance, to develop a 500-rai area for the aerospace and robotics industries in the vicinity of U-Tapao international airport, which is poised to become an important commercial district for aeronautics, cargo and automation industries,” she said. Last month, WHA handed over a built-to-suit 15,600 sq m aerospace manufacturing facility to US-based Omada International.
In foreign markets, WHA Logistics’ objective is to expand by 10% within the next five years in countries such as Indonesia, Vietnam and, later on, Myanmar, Malaysia and Cambodia. In Indonesia, where domestic-oriented industries offer a huge potential, WHA Logistics already controls 25,000 sq m in built-to-suit facilities in West Jakarta, representing a fully-owned investment of THB 400 million. Another joint venture investment with a local partner is planned for 2017 in Surabaya.
“Indonesia and Vietnam need modern and value-added logistics capabilities,” explained Ms Jareeporn. “Our plan in these countries is to grow as a group, leveraging on synergies with our group’s own industrial estates as well as our partnerships with large companies such as Daiwa House Industry.” WHA already partners with Central Group and KPN for world-class warehouse joint ventures in Thailand. Last month, WHA announced a joint venture agreement with Daiwa House Industry, a major player in Japanese built-to-suit facilities, which is already present in Vietnam.
Currently, WHA Logistics controls 2.2 million sq m in built-to-suit logistics facilities, ready built factories and warehouses. Within the next 5 years, this figure is expected to reach over 3 million sq m in Thailand and about 300,000 sq m overseas.
Planned Investments of THB 14 billion for Industrial Development Hub
Within the next 5 years, WHA Industrial Development plans to invest another THB 14 billion to develop two industrial estates in the Eastern Seaboard, plus another two overseas. The group’s objectives are to extend its number one position in Thailand and to establish a presence in neighboring countries.
In Thailand, thanks to the acquisition of Hemaraj and its 27-year experience in the development of industrial properties, WHA Industrial Development counts 8 premium industrial estates under operation, plus two under development in the Eastern Seaboard and Saraburi. All in strategic locations, they represent over 45,000 rai of land, allowing the WHA Group to rank first, with a market share of 32% over the last 8 years.
Already the owner of 11,000 rai in its “land bank”, WHA plans to buy more land by 2018 and develop the necessary infrastructure for its 4 additional Industrial Estates the following year. Designed and transformed into “Smart Districts”, with the most advanced infrastructure in information technology, WHA’s Industrial Estates will continue to target current industries like automotive, electronics and petrochemical while focusing on the EEC’s five key sectors: digital, aerospace, robotics, biofuel and biochemical, plus a medical hub.
“Future industries in the Eastern Economic Corridor will attract new customers including from China, Japan and Europe,” explained Mr. David Nardone, WHA Group Executive Industrial and International. “Investors are interested in Thailand due to the country’s strategic location, good infrastructure, reasonable costs and its human resource skills, not to mention the quality of life,” he said.
Starting with Vietnam, WHA Industrial Development will also expand its regional footprint, leveraging on its extensive customer network and the improved regional interconnectivity in terms of road, rail, air and maritime transportation infrastructure, people mobility and trade development.
“We plan to develop 2 industrial zones in Vietnam, representing over 10,000 rai,” said David Nardone. “Our initial focus in Vietnam is on export-oriented industries such as electronics, automotive, consumer products, food and textiles.”
Utilities and Power Hub: THB 11 Billion Investments
WHA plans to invest THB 11 billion within the next five years in Utilities and Power. A natural complement to Industrial Estates, these activities will continue to develop in parallel with WHA Industrial Development’s investments, both locally and overseas.
WHA Group is involved in 13 power projects that will represent a total capacity of 2,537 megawatts (MW) by 2019. Six are under operation (1,655 MW) with IPP, SPP and solar rooftop projects. Another 7 SPP projects are under development (882 MW), which are expected to be operational from late 2016 to 2019. WHA’s total shareholding equity will represent a total operating capacity of 538 MW in 2019. These projects are run through joint-venture partnerships with leading local and international corporations such as Glow Energy, Gulf Power and B. Grimm.
In addition to conventional power, WHA will continue to develop such alternative energies such as solar energy. Since 2014, the Group has been producing 2.5 MW of solar energy on a rooftop area of 2 million sq m. Furthermore, the group plans to collaborate with partners for the development of waste-to-energy projects.
Utilities, which consist of providing raw water, processed water and clarified water, as well as wastewater treatment, will continue to expand at WHA’s Industrial Estates. WHA is the largest private operator in Thailand with a capacity almost 100 million cubic meters per year, and will offer its services outside the industrial estates and possibly overseas.
These activities not only enable WHA’s customers to run their operations with maximum operational security, they also represent a significant percentage of revenue in the form of high-margin recurring income, through dividends and profit sharing.
“In Power, we will seek to be more proactive in conventional energy with our partners, while developing renewable energies and looking for new opportunities abroad, especially in Vietnam,” explained David Nardone. “In Utilities, we plan to diversify our activities through natural gas distribution and telecom fiber optics, both inside and outside our industrial estates in Thailand. Overseas, Vietnam and Myanmar will be the priority countries in this sector,” he added.
THB 4 Billion for Investments in the Digital Platform Hub
WHA has construction plans for three to five data centers over the period 2016-2020. Two are expected to be operational by the end of 2016, the third one in early 2018, and another two projects are considered by 2022 in Rama II and Wang Noi areas.
Conceived as a one-stop service for customers, these data centers will provide network and telecom infrastructure, IT equipment rental & outsourcing, cloud computing and big data, robotics and automation, monitoring tools and control systems, systems integrators and e-commerce capabilities. Optical fiber (FTTx) services will also be developed for other Industrial Estates outside the WHA Group.
A fast-growing sector in line with the Thai government’s policies, Digital Economy is the latest sector where WHA foresees an important potential for development and growth. Within the next three years, Asia will account for more than half of Internet users worldwide. With the development of E-Commerce, the Internet of Things and the growing prominence of “Big Data”, the demand for data centers will increase significantly.
WHA Group wants to play a leading role in this evolution by positioning itself as a one-stop service for digital infrastructure, ranging from data center comprehensive services & solutions. It already enjoys strong business partnerships with leading infrastructure and technology providers to operate data centers, fiber optic and mobile networks.
“Nowadays, data is considered as the “new oil” and we plan to play a key role in the development of the digital economy” asserted Ms. Jareeporn Jarukornsakul. “We will provide world-class IT and telecom infrastructure, develop comprehensive data solutions and platforms to empower our customers, both local and multinational companies,” she said.
“In line with the WHA Group Path to Success, we are looking forward to regular and sustainable growth in Thailand and in the region. We project that by 2020, our group revenue and profit sharing would exceed THB 21 billion” she concluded.
About WHA Group
Established in 2003, the WHA Group’s vision is to provide its local and international customers with warehousing, distribution centers and factory solutions to enable them to operate at full efficiency. The WHA Group has positioned itself as the leading and the largest built-to-suit distribution center, warehouse and factory developer in Thailand’s highly competitive industrial and logistics property market.
Following its acquisition of Hemaraj Land And Development Plc. in March 2015, WHA Group is now the leading developer in Thailand of Industrial Estates, an active player in Power generation, an exclusive provider of Utilities services and a key promoter of Thailand’s digital economy.
WHA Group is a fully integrated business developer of Logistics, Industrial Development, Utilities and Power and Digital Platform.
For more information, please visit our website or contact:
Khun Wandee Lerdsupongkit
WHA Corporation Public Relations
C/O Francom Asia Tel: 02 233 4338 ext. 19Fax: 02 236 8030
A New Visual Identity
To mark WHA Group’s new era, a fresh visual identity has been designed to reflect the dynamism and synergy between the group’s four business hubs, and its ultimate objective to become a “Total Solution Partner” for its customers.
The series of new logos illustrates the group’s origins as a world-class warehouse provider, with the blue WHA letters referring to the original company, “WHA Warehouse Asia”. The logos’ colors have been enhanced, using a younger, more vibrant shade of blue.
The double red line, which in the past represented business stability, has now evolved into a dynamic red curve that denotes speed, power and continual prosperity. It is also a symbol of the group’s expanding turnkey business solutions for its local and international investors.