Liquor tycoon Charoen Sirivadhanabhakdi has invested nearly Bt10 billion in a new sugar plant in Sukhothai. With production capacity of about 36,000 tonnes of sugar cane per day, the plant will generate Bt5 billion for the province annually.
The Namtanthip (Sukhothai) plant will take about a year to construct and will start crunching raw sugar cane in the harvest season of 2011-12. It will cater to cane grown by farmers in Sukhothai and three or four neighbouring provinces.
The company will move operations of its 69-year-old sugar factory in Utradit province, which has production capacity of only 3,000 tonnes of sugar canes a day, to the new plant in Sukhothai.
Apart from liquor and beverages, the Sirivadhanabhakdi clan now owns and operates many businesses in property and hotels, retail, and agriculture.
In addition to the sugar plant, the company is setting up a biomass power plant with 36 megawatts in initial production capacity and up to 72MW of capacity in the second phase. The new power plant will use as its primary fuel bagasse created as a byproduct of the sugar plant. The power plant will supply electricity to the sugar plant as well as for sale to the Provincial Electricity Authority to distribute to local communities.
The Namtanthip (Sukhothai) sugar plant will initially process 18,000 tonnes of sugar cane per day and require about 2 million tonnes of raw cane to be crunched annually, enough to occupy a total planting area of about 200,000 rai (32,000 hectares). In the second phase, the plant will double its production capacity to 36,000 tonnes of cane per day, primarily from Sukhothai and Utradit provinces.
The sugar plant will generate between Bt4 billion and Bt5 billion for the Sukhothai economy and create between 8,000 and 10,000 jobs.
Charoen said he decided to set up a new sugar plant in Sukhothai as the province has never had one. He said it would increase the potential of the province and increase opportunities, income and living quality for local farmers.
The plant has been approved by the Ministry of Industry and Ministry of Natural Resources and Environment regarding environmental issues.
The sugar plant and biomass power plant projects will require a combined investment of about Bt9 billion.
The company is also setting up sugar and biomass plants in Kamphaeng Phet province.