PTT weighs exit from EV joint venture in Thailand
The move aimed at shoring up cash flow as both Thailand and the global economy slow.
Thai state-backed energy group PTT Plc is considering selling its stake in an electric vehicle (EV) manufacturing venture with Taiwan’s Hon Hai Precision Industry, a move aimed at shoring up cash flow as both Thailand and the global economy slow, reported the Bangkok Post.
Chief executive Kongkrapan Intarajang said on Wednesday that PTT plans to raise an additional 100 billion baht through asset sales between the fourth quarter of 2024 and the end of 2026. The company has already generated 47 billion baht from divestments in the first nine months of this year.
PTT and Hon Hai, better known as Foxconn, formed Horizon Plus in 2021 to produce EVs for Chinese brands. The value of the deal was not disclosed in Wednesday’s briefing, though PTT previously reduced its holding from 60% to 40%.
The company is also reviewing its petrochemical operations, inviting new investors while maintaining majority ownership. Further divestments are expected in its EV battery joint venture with China’s Gotion and in its petroleum storage unit, PTT Tank Terminal.
PTT also plans to expand its liquefied natural gas business, seeking new supply contracts and increasing regional LNG resale volumes from 2.2 million tonnes to 10 million tonnes by 2030.
