Khon Kaen Sugar to expand projects

The move is part of parent the KSL Group's planned Bt7-billion renewable-energy project for this year and next.

At present, the group has four sugar mills in Thailand, with a market share of 7.5-8.5 per cent, or 67,000 tonnes of sugar cane per day.

Khon Kaen Sugar assistant vice president Chalush Chinthammit yesterday said his company's sugar-business integration would result in the production ethanol, fertiliser and electricity, using cane as a raw material.

Chalush said annual sugar production from the projects in Cambodia and Laos would reach 100,000 tonnes and 50,000 tonnes, respectively, in 2010, the first full year of expanded operations.

Laos and Cambodia have granted the company large concessions for sugar-cane planting and sugar-mill licences. They receive benefits from exporting sugar to the EU under "late-developing country" status, Chalush said.

In 2010, combined ethanol and fertiliser production will amount to 350,000 litres a day. Processed sugar cane will also be used to fuel a 40-megawatt power plant.

"This will increase company sales to Bt18 billion in 2010, following estimates of Bt10 billion for 2008 and Bt12 billion for 2009," said Chalush.

Khon Kaen Sugar recorded revenue of Bt8.35 billion for a net profit of Bt708 million in its fiscal third quarter ending June 30.

Chalush said the KSL Group would also expand its sugar-mill and ethanol facilities and power-plant business in Kanchanaburi's Bo Ploi district, increasing group crushing capacity 6 per cent to 78,000 tonnes of cane per day by the end of next year.

Thailand, the world's second-largest sugar exporter, has a competitive edge in terms of location, because most of Asia does not have enough sugar, company data showed. In the 2007-08 season, Asian sugar production reached 64.46 billion tonnes, against consumption of Bt67.96 billion tonnes.

Chalush said Thailand also had the potential to supply ethanol to the rest of Asia. The Kingdom is presently in a start-up phase, using molasses, cane juice and cassava as raw materials for production.