Charoen Pokphand pours Bt3 bn into Vietnam
By Petchanet Pratruangkrai
The Charoen Pokphand Group has invested Bt3 billion for setting up a new integrated food production plant in Binh Doung, Vietnam, as part of its strategy to penetrate overseas markets.
Sarasin Viraphol, the group's vice chairman, said the investment plan will include feed mill, integrated chicken business from farm to processed foods.
In the beginning, the production will cater to the domestic market. Exports will be considered later.
"Food production in the country has a bright future as CP Group has advanced technology for food safety standards compared with local investors," Sarasin said.
The company said the feed mill's production capacity will achieve 600,000 tonnes per year.
Meanwhile, pursuing its strategy of penetrating the Middle East market, the company has set up a special committee to study the possibility to increase exports to the region.
Sarasin said economies of countries in the Middle East will grow considerably as oil prices go up.
The market will have higher demand for food. The company aims to export fresh chicken, shrimp, and eggs to the market, he said.
It is expected that the feasibility study will be completed in a few months so that the firm can promptly start exporting many food products to the market.
So far, the company has signed a farming contract with Bahrain for supplying food products, he added.
Meanwhile, Charoen Pokphand Engineering will launch an innovative palm extraction dry-processed machine for farmers.
Nared Chin-Inmanu, assistant vice president of the company, said that it will be the first machine that has high efficiency to extract palm fruits with a lower percentage of crude palm-oil loss. The machine will be sold for Bt4.5 million with a production capacity of 1.5 tonnes of palm fruits per hour. The firm is expected to sell about 10 machines this year.
Nared said that the higher oil price will encourage farmers to grow more palm fruits next year. The plantation area for palm fruits will increase from 3 million rai to 3.5 million rai next year.
The new palm-oil extraction machinery will help promote the growth of the alternative fuel industry, he said.
Bahrain delegation visiting CP offices in Bangkok, 2008. Source: CPF
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