Flood-hit rice packer set to resume operations

   Sandee Rice plant is one of two rice plants in Nava Nakorn Industrial Estate that was seriously flooded. The firm suffered losses of Bt150 million to Bt200 million from damaged machines and Bt80 million from damaged rice stocks.
The company’s managing director, Burin Thanatavornlap, said he hopes that Thailand does not face a repeat of the floods this year, otherwise the country will totally lose credibility among local and foreign investors.
“It is the Kingdom’s future that is at stake, not that of the government. The government could easily step down if serious floods reoccur, but Thailand would lose all opportunities for drawing in new investment or even keep existing investment in the country,” said Burin.
He said that Thai enterprises and foreign investors, which were affected by the floods, are struggling to reoperate businesses and prevent future inundation by themselves.
After being flooded last year, Sandee Rice is expected to restart operations in early April. Burin has spent more than Bt100 million, from insurance and his own budget to reopen his firm. Sandee’s insurer has not yet paid all the compensation claims to the firm for the flooding.
Although the plant was flooded for two months, the packed rice under Sandee Brand did not disappear from the market. After the initial shock caused by the floods, Burin said that he outsourced production to three alliance enterprises to ensure that the company will have products to supply to consumers in the domestic market and for exports.
Normally, the plant in Nava Nakorn will be able to produce 500 tonnes of rice per month. The outsourcing of production has created less production compared to the normal period.
However, the firm could retain the trust of its customers as “Sandee Rice” brand has always been available.
Although the firm outsourced rice production during the inundation, the firm retained its quality-control unit to ensure quality.
So far, more than 90 per cent of the company’s sales revenue is from domestic sales, while the remaining are from exports, mainly to Australia, the United States, and Hong Kong.
The company expected to achieve Bt1 billion sales in 2012. However, it will miss the target due to the serious floods last year.
In spite of the flooding, the firm has promised to pay a 10-per-cent bonus to its employees this month.
Burin said that the flood disaster had helped the firm get stronger and recognise the loyalty of employees. Although some workers needed to leave the company because of the flood, most workers are still with the firm as they are convinced the work place is a part of their family.
Sandee Rice is expected to meet its full production capacity after re-operating its plant in the second quarter of the year.
To escape damage from future floods, the firm has moved all main machines to a height of 2.80 metres. The plant was flooded to 2.50 metres height last year.
The company also plans to set up new plant outside the industrial estate. Burin said the establishment of the factory in the estate was a handicap as the estate cut electricity and water supplies. However, as the firm has invested a large sum of money in setting up the plant in the estate almost a decade ago, the firm must reoperate the plant there, but it has no plan to expand its business there.