Hemaraj Seals Major Land Deal with SAIC Motor-CP Manufacturer of MG cars purchases a 437.5-rai plot of land at Hemaraj ESIE 2

Bangkok, 26 November 2015 – SAIC Motor-CP Co., Ltd., the automotive joint-venture founded in 2013 by China-based car manufacturer Shanghai Automotive Industry Corporation (SAIC) and Thailand’s Charoen Pokphand Group (CP Group), has signed a land purchase agreement with Hemaraj Land And Development Plc. for a 437.5-rai plot in Hemaraj Eastern Seaboard Industrial Estate 2 (Hemaraj ESIE 2), located in Chonburi, Thailand.

The largest land sale finalized this year by Hemaraj, the site will see the construction of SAIC Motor-CP’s future manufacturing plant. The construction will be divided into 2 phases, with the first phase expected to begin immediately in 2016. Once completed, the plant will have a maximum production capacity of 200,000 units per annum, both for the domestic and the export markets, thus becoming the company’s production hub in Southeast Asia.

“I would like to extend our thanks to the management of SAIC Motor-CP for its continued trust in Hemaraj Land And Development for their expansion program” said Ms. Jareeporn Jarukornsakul, Vice Chairman of Hemaraj’s Board of Directors and Executive Committee. “This land purchase agreement is a proud moment for Hemaraj, with our relationship with SAIC Motor-CP and the MG brand, as well as a significant event for the automobile industry in Thailand,” she added.

Hemaraj’s expanding automotive cluster in the Eastern Seaboard

“This land deal is another testimonial to Thailand’s attractiveness and the confirmation of Hemaraj’s advantages and resources to expand its automotive cluster in the Eastern Seaboard,” commented Mr. David Nardone, Hemaraj’s President & CEO. “Hemaraj ESIE 2 offers world-class facilities with excellent infrastructure, solid soil 120 meters above sea level, and an ideal location for SAIC Motor-CP to expand its manufacturing operations.

“This land purchase at Hemaraj ESIE 2 is a long-term investment and a significant step in our group’s development,” explained Mr. Wu Huan, President of SAIC Motor-CP. “Thailand represents a great industrial base for our joint-venture, and Hemaraj has been playing a leading role in the development of the automotive cluster in the Eastern Seaboard, so we are happy to strengthen further our partnership with Hemaraj to increase our production capacities,” he declared.

In 2013, SAIC Motor-CP reached its first agreement with Hemaraj for the lease of ready-built factories representing a total area of 17,280 square meters, at Hemaraj Eastern Seaboard Industrial Estate. From this initial production facility, the Chinese-Thai joint-venture launched in June 2014 the MG6 saloon, the company’s first vehicle assembled in Thailand, followed last March by the MG3 hatchback and this month by the MG5 saloon.