30 May 2024

BBGI’s advanced biotechnology plant receives BOI with highest A1+ Level Privileges

BBGI received investment promotion privileges from the BOI for the construction project of its advanced biotechnology plant (CDMO). The joint venture company BBFB received A1+ level privileges, including a 10-years exemption from capital gains tax. This is the highest level of support for biotech businesses. Currently, construction is progressing according to plan, with the first phase expected to be completed this year.

Mr. Kittiphong Limsuwannarot, Chief executive Officer of BBGI Pcl. or BBGI, a leader in the biofuel industry and producer of high-value bio-products (HVP), revealed that the company had received investment promotion privileges from the Board of Investment (BOI) for the construction of Thailand's and Southeast Asia's first commercial advanced biotechnology plant (CDMO) under the joint venture company BBGI Fermbox Bio Co., Ltd. (BBFB). BBGI established BBFB in partnership with Fermbox Bio, a leading Indian company in research and production of synthetic biology products using advanced precision fermentation processes, with BBGI holding a 75% stake in BBFB.

BBGI Fermbox Bio Co., Ltd. (BBFB) received supports and privileges from the BOI under the promoted category 1.6 for Biotechnology business. It was granted A1+ level privileges, which included a 10-years corporate income tax exemption with no cap on the exempted amount. This represented the highest level of privileges for biotechnology businesses as stipulated by the BOI.

However, the BOI places great importance on promoting businesses in the agriculture, food, and biotechnology industries, which are considered crucial for the sustainability that BBGI focuses on through research and development. The goal is to elevate the country's industries towards value-creating industry or Industry 4.0 through biotechnology. This will enhance Thailand's competitiveness in terms of food, energy, and environmental security, as well as foster the development of domestic personnel.

The biotechnology factory (CDMO) utilizes precision fermentation technology with large-scale production tanks. Initially, it will produce enzymes and later expand to other advanced synthetic biology (Synbio) products. For Phase 1 of the project, with a total fermentation capacity of around 200,000 liters, the focus will be on producing enzymes that can be used in various industries, with an annual production capacity of 2,000 tons. The enzymes produced in this phase will be primarily used in the energy industry.

Currently, the said project is under construction and is expected to be completed by the end of this year. It will be ready for commercial operations in the first quarter of 2025. In phases 2 and 3, the production capacity will be expanded for other products using Synbio technology for export sales within the region. The target is to increase the fermentation capacity to 1 million liters, produced with advanced upstream and downstream equipment. The total investment value is estimated to exceed 3 billion baht.

Moreover, this project is located in the Eastern Economic Corridor (EEC) in Chachoengsao Province and is among the targeted businesses promoted by the government investment scheme which has the objective to uplift the country's economy across all sectors, focusing on investing in new S-Curve industries related to the development of agricultural and biotechnology industries.