Tobacco Monopoly Rethinks Rojana Plan

Source from:  Bangkok Post 11/18/2011

The Thailand Tobacco Monopoly (TTM) is reconsidering its plan to build a second tobacco production plant worth 20 billion baht at Rojana Industrial Park in Ayutthaya for fear of inundation, says Deputy Finance Minister Boonsong Teriyapirom. Mr Boonsong, who oversees key revenue-source departments, has asked the board of TTM to reconsider the plan even though it already purchased 300 rai of land in the industrial estate. Rojana is one of seven industrial estates that have been flooded for a month, shaking the confidence of several Japanese investors who had been told by the Thai government that their production bases would be safe. Mr Boonsong suggested more than one plant to minimise risk, and the board has a month to revise its plan. Tosak Chotimongkol, the TTM managing director, admitted the state enterprise was concerned. "TTM generates over 60 billion baht a year for the country, so any flood damage to our production would have a major impact," he said. He added that even if the industrial park operator was prepared for floods, the area outside would remain flooded, causing logistics problems. TTM has signed a construction contract with Ch. Karnchang (CK) worth 4 billion baht, while the total cost of the production facilities is 16 billion. CK completed the piling before floods halted construction. The contract requires CK to complete construction within 960 days from June 2011. "Rojana has a good plan for protecting the park from floods as it had more than five layers of barriers all at least four to five metres above sea level, high enough to keep it dry from previous floods," said Mr Tosak. Rojana survived major floods in 1995 and 1996, but this year the volume was too much, he said. Enditem