Bangchak set to open new ethanol plants in Laos and Cambodia before AEC
Bangchak Petroleum plans to open an ethanol manufacturing plant each in Laos and Cambodia to serve rising demand once the Asean Economic Community (AEC) goes into effect in 2015.
The company’s president Anusorn Sangnimnuan said that although it was only focusing on the oil-trading business in these two countries, seamless operations via the AEC would create capital inflow and outflow in the region. As a result, the company foresees business opportunities in both countries that have greater available land and labour.
A team is currently conducting a feasibility study on investment opportunities there.
Anusorn explained that in order to achieve economy of scale, a plant had to produce at least 200,000 litres of ethanol per day, which requires an investment of Bt1 billion. Construction of the plants will take up to two years.
The company will also enter a joint venture with a local partner, though Bangchak will remain a major shareholder with management control. The plant in Laos will also provide raw materials for the company’s ethanol plant in Ubon Ratchathani, called Ubon Bio Ethanol.
He pointed out that the regional free-trade pact should encourage people to use more gasohol, which will not just be good for the environment but will also boost income for the farmers.
