TTM scales down Rojana plans, to seek location in North
Thailand Tobacco Monopoly will reduce its investment in a planned factory at Rojana Industrial Park and seek another estate in which to build a second plant, as it aims to mitigate against the risk of natural disaster.
Managing director Torsak Chotimongkol yesterday said TTM remained committed to investing in Rojana Industrial Park in Ayutthaya province, even though the estate found itself under a massive volume of flood water last year. However, production capacity at the factory will now be smaller than under the previous plan.
He said that because a 250-rai plot in the park had been bought and piling work had already been completed, TTM had to continue its investment at Rojana, but cigarette production would be cut to 60-65 per cent of the original plan.
TTM wants to build another factory close to Chiang Mai or Chiang Rai, or in Den Chai district in the northern province of Phrae. The Kingdom’s main tobacco farms are in this area.
The state enterprise wants to improve its risk management by taking precautions to mitigate against natural disaster such as any repetition of last year’s severe flooding, said Torsak.
The MD said he would tomorrow seek board approval and hire consultants to study potential new locations. If the board approves the plan, the proposal will then be forwarded to the Cabinet.
If the Cabinet gives the nod to the project, the National Economic and Social Development Board will conduct a study into the potential investment return.
The factory site is expected to be located in the North, with the proximity to tobacco farms, transportation and the impact on environment being taken into account, he added.
Under the previous plan, the investment required for relocating from Bangkok to another province was estimated at Bt16.2 billion.
