Hemaraj 20th Anniversary: Tale of the Phoenix

Mr. Sawasdi Horrungruang, the visionary founder of Hemaraj Land And Development Plc, recounts his vision 20 years ago when he and another 2 partners, Mr. Thavorn Anankusri and Mr. Thongchai Srisomburananont founded the company that pioneers industrial land development in the Eastern Seaboard region.

“My involvement in the Eastern Seaboard Development went back a long way,” so began the conversation with Mr. Sawasdi Horrungruang, the visionary founder of Hemaraj Land And Development Plc., which he established in 1988 and named after the mythical bird of immortality, the Phoenix.

Back in the 1980s when the then government was considering large-scale industrial development programs for the eastern part of Thailand under the 5th National Economic and Social Development Plan (1982-1986), Khun Sawasdi was convinced here was an opportunity for the private sector to play a role in shaping the future of the country.

It was clear that the Eastern Seaboard area would emerge as Thailand’s industrial gateway, with the national petrochemical complex at Map Ta Phut, Rayong Province, the container port at Leam Chabang, Chonburi Province, and massive investments in power, refineries, highways, transportation, communications, human resources and supporting infrastructure.

To aid the government policy of industrializing the region, Khun Sawasdi’s vision was to build a vast modern industrial complex, primarily to serve his steel conglomerate as he was considering transferring steel production from Samut Prakarn to the eastern province of Chonburi. Realizing that the operation would require huge capital investment to develop necessary infrastructure and utilities, Khun Sawasdi took a bold step and decided to build a complete state-of-the-art industrial estate with comprehensive amenities and services. Up to 5,500 rai of land in Bowin, Sriracha District was thus acquired for the development of Hemaraj Land and Development’s first industrial estate project.

Fully-integrated and professionally-managed, Hemaraj Chonburi Industrial Estate is today home to over 50 leading manufacturers of steel, electronics, auto parts and power. Over the past 20 years, six prime industrial estates have been developed by Hemaraj mainly in the Eastern Seaboard of Thailand, covering some 31,000 rai, with more than 372 customers and over US$14 billion in combined customer investments.

“Our industrial estates are world-class facilities with professional and dedicated staff, excellent supporting infrastructure and comprehensive utilities services, be they clean water, waste water treatment, waste disposal landfill or power generation. We are committed to providing the best manufacturing environment so that investors who choose to invest with us can invest with confidence,” said Khun Sawasdi.

With each project, Hemaraj hopes to make some contribution to the industrial strength of Thailand by facilitating foreign direct investment inflows, he added. Every location offers quality developed land, utilities, SME Factories for Rent and Sale, and infrastructure services to meet specific and diverse manufacturing requirements.

Hemaraj was recognized as the first in Thailand to spearhead the industrial clustering concept to maximize the efficiency of resources utilization. Highly successful are the two major auto clusters at Eastern Seaboard Industrial Estate (Rayong) and Hemaraj Eastern Seaboard Industrial Estate, both in Rayong Province. Dubbed the “Detroit of the East”, their combined strength creates one of the most integrated automotive industrial estates in the world.

According to Khun Sawasdi, industrial clustering not only allows for efficient logistics and supply chain management but also ensures matching resources are made available for the safeguard of our environment. “Industrial land development is not a business to yield quick returns. It is a long-term commitment; the business has to be nurtured, and built in a sustainable manner to produce rewards in the long run,” Khun Sawasdi added.

With that recognition, Hemaraj ensures that all its industrial estates are developed and managed with professionalism and appropriate level of supervision so that investors can invest confidently in Thailand. Moreover, it aims to achieve all relevant internationally-recognized industrial and environmental controls and standards. Yet, progress and prosperity at Hemaraj communities over the past 20 years would not be realized without the cooperation and trust of local as well multinational customers.

“We owe it to our customers who understand and appreciate our principles. It’s a tremendous honour and privilege to serve them. They have entrusted us with their brand values and tangible assets. On behalf of Hemaraj’s board of directors, I’d like to say a big ‘thank you’. Similar to the Phoenix, our namesake, Hemaraj has the staying power, determination and dedication. We will never let down our investment partners and friends,” Khun Sawasdi emphasized.

Hemaraj’s founder never wants to stop dreaming and hoping. With strong determination and a beautiful mind, he has made his vision for Hemaraj come true.

Ms. Monta Pranootnorapal, Governor of the Industrial Estate Authority of Thailand (I-E-A-T), Pays Tribute to Hemaraj’s Commitment and Contribution.

“Working with Hemaraj Land And Development Plc. represents one of the most enduring and fruitful cooperation. The company is a pioneer in the industrial property business which not only requires intensive capital investment to develop top-rated infrastructure and utilities services, but also a brave and clear vision as well as long-term commitment to the national industrial development.”

From the early age of Eastern Seaboard, Hemaraj and I-E-A-T have been working closely together to provide efficient production bases for industrial investors. We supported each other: Hemaraj by investing and providing useful comments and I-E-A-T by providing tax and non-tax incentive for their customers, adjusting our processes enhancing speed and creating new sections, one of which is One-stop Services Center to accommodate investors’ requirements.

“I’d like to think that we have achieved so much because of our close collaboration over the years; we are the reason behind each other’s success. Such is the nature of our valued partnership.”

“We recognize that Hemaraj is an industrial developer with superior strategy. The ‘Detroit of the East’ concept is a grand development vision with the aim to create a modern industrial city and reinforce the country’s strength. ESIE, dubbed ‘Detroit of the East’, is a pilot project that is regarded as the national highlight. Mention ‘Detroit of the East’ and immediately everyone thinks of Hemaraj.”

“Hemaraj has been a key driver for change. It has played a key role in Thailand’s economic security and well-being, especially in terms of improving livelihood of people, enhancing education and employment opportunities for local communities as well as promoting new technologies and innovation.”

“As Governor of the I-E-A-T, I’d like to invite businesses up and down the country to consider moving their factories into proper industrial estates as a way of maintaining environmental balance and social integrity. And Hemaraj is one of the brands we do not hesitate to recommend to any business operators.”