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Published on March 14, 2008

Deputy Finance Minister Pradit Pataraprasit called tobacco a "sunset industry".

Pradit yesterday met with executives of the state monopoly to discuss its business future, as social activists and governments worldwide have recently stepped up anti-smoking campaigns.

He said he foresaw declining profits over the next five years, from an estimated Bt4 billion this year to Bt2 billion in 2012.

The state enterprise in the past has transferred Bt30 billion to 40 billion a year to the government.

Pradit said competition from foreign brands was also threatening the TTM. Its market share dropped to 74 per cent last year from a peak of 90 per cent.

Foreign cigarette brands have increased their market share about 1 per cent a year recently.

The TTM sold 39.3 billion cigarettes last year.

Meanwhile, the TTM plans to relocate its factory from the heart of Bangkok to new locations in neighbouring cities within a 200-kilometre radius from the capital. Previously, it had planned to build a new factory in Chiang Mai.

Pradit said the TTM had not yet found a suitable place for a new

plant, but it should be in an industrial park.

The new plant requires an investment of about Bt13 billion. The Finance Ministry will hold an international bidding for new cigarette-production machines, he said.

Pradit assigned the state enterprise to seek new businesses related to cigarette production, in order to maintain its income.

TTM chairman Wisudhi Srisuphan said his agency planned to seek strategic partners within the tobacco industry.

Meanwhile, a source said the TTM might propose to Pradit construction of a facility for those addicted to cigarettes. However, it must also be approved by the public-health minister, he said.

Wichit Chaitrong

The Nation