7/21/2004 BANGKOK POST - Three top Chinese companies plan to invest atleast 32 billion baht in the television manufacturing, cooking oil andenergy production sectors in Thailand, according to members of a Thaitrade mission that visited the country last week.

Industry Minister Phinij Jarusombat said the companies were China NationalMachinery & Equipment Import & Export Corp (CMEC); China National Grainand Oil Group, based in Beijing; and Sichuan Changhong Electric Co,located in Chengdu, which is the largest colour TV producer in China.

CMEC, a giant industrial foreign trade corporation, has expressed stronginterest in two projects: producing ethanol from cassava roots andsugarcane, and a gas-turbine or hydroelectric power plant.

The ethanol project would require an investment of about five billionbaht, while the power plant project could cost up to 30 billion.

According to Mr Phinij, China National Grain and Oil wants to invest 500million baht to produce soybean oil for re-export to China and for sale inThailand.

Sichuan Changhong Electric was the only company that had representativesat the official ceremonies during the three-day visit by the Thaidelegation, when a trade co-operation framework agreement was signed.

Under the proposal, Changhong would set up plants in Thailand at anundisclosed location near a seaport, railway or airport for easy shippingaccess.

"The investment is possible next year," said Liu Tibin, the vice-chairmanof Sichuan Changhong Electric.

Founded in 1958 at Mianyang, 91 km from Chengdu, Changhong has sold morethan 80 million colour TV sets worldwide.

Apart from televisions, the company also manufactures air-conditioners,batteries, telecommunications components, small household appliances,video systems and LCD displays.

The company, which began selling Changhong TV sets in Thailand in 2000,imported parts worth over US$54 million from Thai producers last year.

According to Mr Liu, the output of the planned factory would be sold onthe domestic market and exported to Thailand's neighbours.

The Thai companies Vee Rubber Co, a major exporter of tyres, and PCS, amaker of auto parts for pickup trucks in Nakhon Ratchasima, both expressedinterest in investing in China, said Mr Phinij. Figures for the Thaiinvestments in China were not available.

The commitment by Changhong Electric to Thailand is expected to intensifycompetition in the local television and audio visual market.

Last month, China's TCL Group announced plans to aggressively pursue agreater share of the Thai market, shortly after it acquired ThomsonElectronic Co's local plant. The group controls 67% of TCL-ThomsonElectronic Co.

TCL chairman Li Dongsheng said earlier during his visit to Thailand thatproduction of TCL television sets at the Thomson plant in Pathum Thaniwould begin in September, using knocked-down kits imported from Chinatariff-free.