The price of sugar has risen to its highest level in 28 years due mainly to severe drought in many countries particularly India, which has resulted in shortage of supply in the global market.
Thai Sugar Millers Corporation (TSMC) said yesterday that the primary price of sugar cane for the new crop will hit Bt1,150 per tonne, which is the highest since 1982.
Prakit Pradipasen, chairman of TSMC, said the price will remain at these levels with increasing demand in the world market.
He added that sugar price in the world market had increased by 20 cent per pound due to decline in sugar production in many countries following drought.
"Sugar-price trading in the futures market has skyrocketed 24.78 per cent per pound in March 2010. If the price keeps rising, the final price of sugar cane should be higher than the estimated primary price of sugar cane of Bt950 per tonne for the harvesting season 2009/10," said Prasert Tapaneeyangkul, secretary-general of the Office of Cane and Sugarcane Board (OCSB).
If the final price of sugar cane is higher than the primary price, sugar manufacturers will need to pay the additional amount to sugar-cane growers for that season.
The primary price of sugar cane in 2008/09 was Bt830 per tonne, while the final price was forecast to be around Bt860 per tonne, he said.
He is confident the price of sugar cane in 2009/10 will be higher than last season, which should be higher than Bt980 per tonne.
The main factor pushing up the global sugar price was India, which has shifted from being a sugar exporter to importer because of the drought situation, he said.
"India's sugar stocks have been decreasing, from 9.3 million tonnes last year to 7.5 million tonnes this year. It will further drop to 5 million tonnes in 2010," he said.
The Indian Sugar Mills Association has estimated that sugar output in India would reach 19 million tonnes next year from 14.7 million tonnes this year.
However, it is believed that sugar production would be only 16 million tonnes next year because of poor sugar cane species and the impact of climate change.
India currently consumes around 22 million tonnes of sugar each year, which has tended to increase following the economic recovery and its huge population.
Vibul Panitvong, executive chairman of Thai Sugar Millers Corporation, said the price of sugar cane could rise to Bt1,100 per tonne in the year 2009/2010 due to the skyrocketing price of sugar.
"The higher sugar price will hike the total value of Thailand's sugar exports from US$1.5 billion (Bt51 billion) this year to $2.5 billion in the coming year," he said.
Besides India, he said the world's largest sugar exporter, Brazil, would also not be able to make up the shortage in supply despite boosting its sugar-cane output.
"The higher output will go towards serving 30 new ethanol plants in Brazil. Presently, 57 per cent of total sugar cane output in Brazil is used to produce ethanol, and the rest 43 per cent is used to produce sugar," he said.
Brazil is expected to increase its sugar exports from 31 million tonnes this year to 33 million tonnes next year.
Due to lower sugar export from India and other countries, it will be a good opportunity for Thailand to boost its exports and for local sugar-cane growers who will be able to sell the sugar cane at a better price.
The output of sugar cane in 2009/10 is expected to be around 71.6 million tonnes, up from 66.46 million tonnes in 2008/09 as a result of high rainfall. Consequently, sugar production will increase from 7.19 million tonnes to 7.64 million tonnes. However, Thailand's main obstacle is to improve sugar-cane yield and the structure of benefit sharing.
Vibul said Thai sugar manufacturers have expanded their business to neighbouring countries such as Laos and Cambodia because of limited agricultural areas in Thailand and tariff incentives to export to European Union countries.
He said Thailand's subsidy system has created price distortions and reduced the overall industry competitiveness.
In 2007, the Cabinet put the development of the sugar-cane industry on the national agenda, to be completed in three years.
"It's shameful that though we proposed an annual budget of Bt1.1 billion for three consecutive years, the government has not approved it at all. Therefore, it is difficult for us to move forward with the projects in the national agenda," Prasert said.
There are five development plans in the national agenda: research and development of cane species, value-added creation of by-products from sugar cane, productivity improvement, alternative energy, and corporate social responsibility.
Monday, August 31, 2009
Friday, August 28, 2009
East Water bullish on revenue as demand surges
Eastern Water Resources Development and Management Plc (EASTW) expects better performance this half from demand increases as production capacity show signs of improvement.
"Revenue improved 12% in the first half from higher water prices but this half could see even more improvement as raw water demand has jumped, especially in Rayong, our largest selling area," said chief executive Praphant Asava-aree.
East Water derives 63% of its revenue from raw water, 22% from tap water and the rest from services and drinking water.
It forecasts a yearly 8% drop in untreated water consumption this year from shrinking industrial production but the price increase helped offset and improve its yearly revenue by 12-15%.
Raw water demand is expected to drop 4% this year to 215 million cubic metres, while a 10% increase is expected next year to 233 million cubic metres as domestic consumption increases and petrochemical projects expand.
Net profit should also grow more than 15% from higher prices and lower cost.
Average water prices climbed 15% from last year to 9.10 baht per cubic metre. This average should remain stable until next year, according to a study to be issued early next year.
In the second quarter, East Water earned a net profit of 222 million baht, up 21% year-on-year and 4% from 214 million in the first quarter, as revenue rose 10% year-on-year to 729 million.
First-half net profit was 436 million baht (0.26 baht a share), up 15.61% from 377 million (0.23 baht a share) from a year earlier. The yearly dividend will be more than the 20 satang forecast earlier.
"We decided on 10 satang per share in the first half to be conservative, but since the economic situation seems to have improved, we should increase our return to shareholders too," he said.
Further cost cutting such as renting out building space is planned, while a five-year investment of 3.6 billion baht should improve its capacity to accommodate demand in the next 10 years.
For its raw water business, East Water is in the process of extending pipelines in Nong Plalai, Map Ta Phut and two other areas, while building its own reservoirs is being studied.
It also plans to extend coverage in areas of existing contracts and is studying the waste water management business.
The company also plans to install a mini-hydro turbine generator at its Prasae reservoir to generate extra revenue.
"We also hope to win a water-loss reduction project in Bangalore, India, and bidding results should be known by October. In addition, we should receive 900 million baht from the Irrigation Department for a pipeline between the Prasae and Khlong Yai reservoirs that we took charge of on behalf of the government. A disbursement this year would support our cashflow," he said.
Shares of EASTW closed yesterday at 3.82 baht, down four satang, in trade worth 4.59 million baht.
"Revenue improved 12% in the first half from higher water prices but this half could see even more improvement as raw water demand has jumped, especially in Rayong, our largest selling area," said chief executive Praphant Asava-aree.
East Water derives 63% of its revenue from raw water, 22% from tap water and the rest from services and drinking water.
It forecasts a yearly 8% drop in untreated water consumption this year from shrinking industrial production but the price increase helped offset and improve its yearly revenue by 12-15%.
Raw water demand is expected to drop 4% this year to 215 million cubic metres, while a 10% increase is expected next year to 233 million cubic metres as domestic consumption increases and petrochemical projects expand.
Net profit should also grow more than 15% from higher prices and lower cost.
Average water prices climbed 15% from last year to 9.10 baht per cubic metre. This average should remain stable until next year, according to a study to be issued early next year.
In the second quarter, East Water earned a net profit of 222 million baht, up 21% year-on-year and 4% from 214 million in the first quarter, as revenue rose 10% year-on-year to 729 million.
First-half net profit was 436 million baht (0.26 baht a share), up 15.61% from 377 million (0.23 baht a share) from a year earlier. The yearly dividend will be more than the 20 satang forecast earlier.
"We decided on 10 satang per share in the first half to be conservative, but since the economic situation seems to have improved, we should increase our return to shareholders too," he said.
Further cost cutting such as renting out building space is planned, while a five-year investment of 3.6 billion baht should improve its capacity to accommodate demand in the next 10 years.
For its raw water business, East Water is in the process of extending pipelines in Nong Plalai, Map Ta Phut and two other areas, while building its own reservoirs is being studied.
It also plans to extend coverage in areas of existing contracts and is studying the waste water management business.
The company also plans to install a mini-hydro turbine generator at its Prasae reservoir to generate extra revenue.
"We also hope to win a water-loss reduction project in Bangalore, India, and bidding results should be known by October. In addition, we should receive 900 million baht from the Irrigation Department for a pipeline between the Prasae and Khlong Yai reservoirs that we took charge of on behalf of the government. A disbursement this year would support our cashflow," he said.
Shares of EASTW closed yesterday at 3.82 baht, down four satang, in trade worth 4.59 million baht.
Thursday, August 27, 2009
Court to look into details of 76 industrial developments
The Central Administrative Court has ordered eight agencies to provide it with details of 76 industrial projects planned for development in Rayong's Map Ta Phut area.
The Stop Global Warming Association and 42pollution-affected villagers sought a court injunction to suspend the projects and their approved environmental impact assessment (EIA) studies.
The plaintiffs accused the National Environment Board and seven other agencies of not following the constitution's Article 67, which states a project seen as harmful to the environment and people's health must undergo public hearings before it could be endorsed.
The court refused to issue an injunction or conduct an emergency hearing of the case, but ordered the plaintiffs and the eight defendants to submit details of the 76 projects within 15 days.
Stop Global Warming Association president Srisuwan Janya said the court required the plaintiffs to show how the 76 industrial plants would harm local people's health and the environment.
The court also told the defendants to report on the construction process and potential impact of the projects,Mr Srisuwan said.
The Stop Global Warming Association and the villagers lodged a court complaint in June.
The case is pending trial.On Tuesday, the cabinet agreed to a Joint State-Private Committee resolution to allow agencies to proceed with issuing permits for industrial projects after it engaged in close legal consultations with the Council of State.
The cabinet resolution spurred the plaintiffs into seeking a court injunction to stop the issuing of permits,Mr Srisuwan said.
Sutthi Atchasai, a leader of the Eastern People's Network, which spearheads local people's fight against pollution in Rayong, said the villagers would hold a mass gathering at Map Ta Phut industrial estate on Sept 9 to pressure the government to follow Article 67 of the constitution.
The article requires the government to arrange for an independent environmental agency to give advice on implementation of projects that could be harmful to people's health and the environment.
Activists also urged the government to draw up a list of activities that are considered dangerous to people's health and the environment.
"It is going to be a very long protest which may have an impact on industrial activity if we don't get a clear answer from the government on how it translates Article 67 into action,"Mr Sutthi said.
Meanwhile, Industry Minister Charnchai Chairungruang yesterday shrugged off the court order, saying the ministry had followed health and environmental protection regulations when dealing with industrial development.
He said the ministry was working on a list of projects with a critical impact on health and the environment under Article 67.
The list would be submitted for cabinet consideration.
The Stop Global Warming Association and 42pollution-affected villagers sought a court injunction to suspend the projects and their approved environmental impact assessment (EIA) studies.
The plaintiffs accused the National Environment Board and seven other agencies of not following the constitution's Article 67, which states a project seen as harmful to the environment and people's health must undergo public hearings before it could be endorsed.
The court refused to issue an injunction or conduct an emergency hearing of the case, but ordered the plaintiffs and the eight defendants to submit details of the 76 projects within 15 days.
Stop Global Warming Association president Srisuwan Janya said the court required the plaintiffs to show how the 76 industrial plants would harm local people's health and the environment.
The court also told the defendants to report on the construction process and potential impact of the projects,Mr Srisuwan said.
The Stop Global Warming Association and the villagers lodged a court complaint in June.
The case is pending trial.On Tuesday, the cabinet agreed to a Joint State-Private Committee resolution to allow agencies to proceed with issuing permits for industrial projects after it engaged in close legal consultations with the Council of State.
The cabinet resolution spurred the plaintiffs into seeking a court injunction to stop the issuing of permits,Mr Srisuwan said.
Sutthi Atchasai, a leader of the Eastern People's Network, which spearheads local people's fight against pollution in Rayong, said the villagers would hold a mass gathering at Map Ta Phut industrial estate on Sept 9 to pressure the government to follow Article 67 of the constitution.
The article requires the government to arrange for an independent environmental agency to give advice on implementation of projects that could be harmful to people's health and the environment.
Activists also urged the government to draw up a list of activities that are considered dangerous to people's health and the environment.
"It is going to be a very long protest which may have an impact on industrial activity if we don't get a clear answer from the government on how it translates Article 67 into action,"Mr Sutthi said.
Meanwhile, Industry Minister Charnchai Chairungruang yesterday shrugged off the court order, saying the ministry had followed health and environmental protection regulations when dealing with industrial development.
He said the ministry was working on a list of projects with a critical impact on health and the environment under Article 67.
The list would be submitted for cabinet consideration.
INDUSTRIAL INDESXES SHOW IMPROVEMENT SINCE JANUARY
Thailand's industrial indexes have improved significantly since the start of the year, with the July manufacturing index contracting only 9 per cent year on year compared to 25.6 per cent in January, according to the Industrial Economics Office.
The index in February contracted 23.1 per cent year on year, March by 23.1 per cent, April by 12.8 per cent, May by 12.4 per cent and June by 6.8 per cent.
Arthit Wuthikaro, director-general of the office, yesterday said the month-on-month figures had also shown improvement since February, when the index rose 0.5 per cent from January.
In March, the index expanded 14.2 per cent month on month. Due to political violence, the April figure contracted 8.7 per cent, before expanding 9.2 per cent and 6.6 per cent in May and June respectively.
The July index, however, dropped 1.3 per cent from June.
Arthit said that despite the July reversal, the index should return to positive territory soon due to new orders in several industries and many plants having to increase capacity as a result.
July capacity utilisation stayed at 57 per cent, well above the trough of 50 per cent in February.
Hard disk drives are one sector for which the manufacturing index has increased for three consecutive months, as manufacturers have been able to offer new products to customers. They are, however, concerned about a labour shortage.
In the first seven months of the year, the sector's output and distribution dropped 6.3 per cent and 6.5 per cent respectively from the same period last year. The sector is expected to show positive growth in the fourth quarter.
The frozen-food sector in July also enjoyed growth in manufacturing and sales.
The index in February contracted 23.1 per cent year on year, March by 23.1 per cent, April by 12.8 per cent, May by 12.4 per cent and June by 6.8 per cent.
Arthit Wuthikaro, director-general of the office, yesterday said the month-on-month figures had also shown improvement since February, when the index rose 0.5 per cent from January.
In March, the index expanded 14.2 per cent month on month. Due to political violence, the April figure contracted 8.7 per cent, before expanding 9.2 per cent and 6.6 per cent in May and June respectively.
The July index, however, dropped 1.3 per cent from June.
Arthit said that despite the July reversal, the index should return to positive territory soon due to new orders in several industries and many plants having to increase capacity as a result.
July capacity utilisation stayed at 57 per cent, well above the trough of 50 per cent in February.
Hard disk drives are one sector for which the manufacturing index has increased for three consecutive months, as manufacturers have been able to offer new products to customers. They are, however, concerned about a labour shortage.
In the first seven months of the year, the sector's output and distribution dropped 6.3 per cent and 6.5 per cent respectively from the same period last year. The sector is expected to show positive growth in the fourth quarter.
The frozen-food sector in July also enjoyed growth in manufacturing and sales.
List of harmful industries due next week
A list of harmful industries will take effect next week as authorities hope to allay investors' concerns about requirements for environmental and health impact assessments, Industry Minister Chanchai Chairungruang said yesterday.
He said that while guidelines on environmental and health assessments for harmful projects were not yet finalised,those not on the list could follow existing environmental impact assessment procedures and proceed their projects.
"Once we put it up as ministerial announcement, we want investment to resume as fast as possible," he said.
Eight industries will likely be listed as harmful and will need extra environmental and community scrutiny.
The list includes all underground mining, all sizes of tin and manganese mines,steel smelting plants with at least 5,000 tonnes of daily capacity, and petrochemical plants with 1,000 tonnes of daily output.
The rules will also apply to industrial estates with steel or upstream or midstream petrochemical plants, all landfills or incinerators for hazardous waste, mineral smelting with chemicals, fossil-fuel power plants of 100 megawatts or more,natural gas or other energy sources of 500 MW and nuclear power plants.
He said that while guidelines on environmental and health assessments for harmful projects were not yet finalised,those not on the list could follow existing environmental impact assessment procedures and proceed their projects.
"Once we put it up as ministerial announcement, we want investment to resume as fast as possible," he said.
Eight industries will likely be listed as harmful and will need extra environmental and community scrutiny.
The list includes all underground mining, all sizes of tin and manganese mines,steel smelting plants with at least 5,000 tonnes of daily capacity, and petrochemical plants with 1,000 tonnes of daily output.
The rules will also apply to industrial estates with steel or upstream or midstream petrochemical plants, all landfills or incinerators for hazardous waste, mineral smelting with chemicals, fossil-fuel power plants of 100 megawatts or more,natural gas or other energy sources of 500 MW and nuclear power plants.
ALLIANCE WANTS HALT TO MAP TA PHUT PROJECTS
The Anti-Global Warming Association and 43 Map Ta Phut villagers yesterday petitioned the Administrative Court to freeze all petrochemical projects planned for the industrial zone.
They also asked the court to reverse the Cabinet's resolution on Tuesday that allowed the issue of operating licences to some petrochemical projects.
The opponents said the licensing did not abide by Article 67 of the Constitution.
Association president Srisuwan Chanya said the projects would cause trouble for the public and environment.
Under the Constitution, all of the projects must conduct both an environmental-impact assessment and a health-impact assessment along with a public hearing. An opinion from an independent environmental body is also required.
Villager Suthi Atchasai said if the petition received no satisfactory results, then on September 9 the Network of Eastern People would gather at the Map Ta Phut Industrial Estate.
"We don't want to block investment but want to ensure that all investment is in line with the Constitution. We may block the port and the industrial estate, as well as the sites for the new plants, in order to send a message to all that pollution problems are not yet addressed," he said.
Recently, the Industrial Estate Authority of Thailand (IEAT) awarded long-awaited operating licences to four industrial projects worth Bt17.55 billion, including one each to the PTT Group and the Siam Cement Group.
Besides the four approved projects, 19 worth Bt305.45 billion are awaiting IEAT approval and 13 worth Bt59 billion are pending approval from the Industrial Works Department.
They also asked the court to reverse the Cabinet's resolution on Tuesday that allowed the issue of operating licences to some petrochemical projects.
The opponents said the licensing did not abide by Article 67 of the Constitution.
Association president Srisuwan Chanya said the projects would cause trouble for the public and environment.
Under the Constitution, all of the projects must conduct both an environmental-impact assessment and a health-impact assessment along with a public hearing. An opinion from an independent environmental body is also required.
Villager Suthi Atchasai said if the petition received no satisfactory results, then on September 9 the Network of Eastern People would gather at the Map Ta Phut Industrial Estate.
"We don't want to block investment but want to ensure that all investment is in line with the Constitution. We may block the port and the industrial estate, as well as the sites for the new plants, in order to send a message to all that pollution problems are not yet addressed," he said.
Recently, the Industrial Estate Authority of Thailand (IEAT) awarded long-awaited operating licences to four industrial projects worth Bt17.55 billion, including one each to the PTT Group and the Siam Cement Group.
Besides the four approved projects, 19 worth Bt305.45 billion are awaiting IEAT approval and 13 worth Bt59 billion are pending approval from the Industrial Works Department.
PROTEST PLANNED AFTER COURT REJECTS COMPLAINTS
Map Ta Phut residents yesterday faced double blows in their efforts against expansion of an industrial estate in Rayong province - a request to temporarily delay the construction of 76 new factories was turned down, and a lawsuit accusing high-ranking officials of negligence in enforcing protective measures in the estate dismissed.
The Central Administrative Court's decision to turn down the first request has prompted protest leaders to threaten a mass rally on September 9 to blockade the Map Ta Phut estate and seaports connected to it.
Sutthi Atchasai said Rayong people did not want to hamper the massive investment in their home district but would like to see pollution-control conditions relating to the project were followed under constitutional requirements. "We are contemplating blockading the seaports and the estate, including the sites of the 76 new factories to be constructed soon," he added.
Sutthi led 42 villagers to submit a petition to the court yesterday morning asking it to issue an injunction to temporarily order a halt to the coming construction of the 76 factories in an expansion phase of the estate until new environmental impact assessment (EIA) studies were conducted.
The judges later ruled the court could not halt the construction but would wait for more information from authorities.
A companion petition was also lodged with the court accusing eight people - five Cabinet ministers and heads of three regulatory bodies overseeing pollution-control measures - of negligence that resulted in the construction of the 76 factories going ahead without new EIA studies.
The second petition also requested that the eight issue more pollution-control regulations and that three of the five ministers - overseeing Industry, Energy, and Transport Ministries - revoke licences already granted to construction projects outside the estate that would soon begin without EIA or other conditions being followed.
Srisuwan Janya, a lawyer allied with the villagers' group, who also represented two non-governmental organisations advocating environment protection and against global warming, said the eight violated laws by approving the construction without a public referendum and without giving mandatory approval for the setup of an independent body to study the projects.
The judges ruled in the afternoon that, in the first petition, the villagers failed to provide information on when exactly the construction would begin and end; and in the second petition, the court would wait for the eight to submit their case to the court.
The Central Administrative Court's decision to turn down the first request has prompted protest leaders to threaten a mass rally on September 9 to blockade the Map Ta Phut estate and seaports connected to it.
Sutthi Atchasai said Rayong people did not want to hamper the massive investment in their home district but would like to see pollution-control conditions relating to the project were followed under constitutional requirements. "We are contemplating blockading the seaports and the estate, including the sites of the 76 new factories to be constructed soon," he added.
Sutthi led 42 villagers to submit a petition to the court yesterday morning asking it to issue an injunction to temporarily order a halt to the coming construction of the 76 factories in an expansion phase of the estate until new environmental impact assessment (EIA) studies were conducted.
The judges later ruled the court could not halt the construction but would wait for more information from authorities.
A companion petition was also lodged with the court accusing eight people - five Cabinet ministers and heads of three regulatory bodies overseeing pollution-control measures - of negligence that resulted in the construction of the 76 factories going ahead without new EIA studies.
The second petition also requested that the eight issue more pollution-control regulations and that three of the five ministers - overseeing Industry, Energy, and Transport Ministries - revoke licences already granted to construction projects outside the estate that would soon begin without EIA or other conditions being followed.
Srisuwan Janya, a lawyer allied with the villagers' group, who also represented two non-governmental organisations advocating environment protection and against global warming, said the eight violated laws by approving the construction without a public referendum and without giving mandatory approval for the setup of an independent body to study the projects.
The judges ruled in the afternoon that, in the first petition, the villagers failed to provide information on when exactly the construction would begin and end; and in the second petition, the court would wait for the eight to submit their case to the court.
Amata sees brighter outlook this half
Thailand's largest industrial estate developer, Amata Corporation Plc, expects stronger performance in the second half due to the improving global economy and more stable local politics.
The listed developer forecasts industrial land sales of 300 to 400 rai in the second half, after selling only 50 rai, a 74% year-on-year drop, in the first half.
"We have a number of potential customers on hand that have been negotiating for a long time. I am confident that these investors will finally conclude their purchasing deals with us within this latter half of the year," said director Viboon Kromadit.
"Investment decisions have been delayed for too long and improving economic indicators should bring interest."Amata's forecast assumes there will be no further political unrest to dampen investor sentiment.
The company is in discussions with investors from the agricultural, automotive and chemical industries, said Mr Viboon.
Land sales account for 38% of the group's income with the rest coming from utilities supply and rental charges.
Amata hopes to attract Chinese investors and benefit from a Chinese venture fund that will invest in Thailand.
Chinese investors are forming a 20- billion-yuan (100-billion-baht) fund to finance investments in Thailand. The fund, which will be finalised by year-end, will facilitate more Chinese companies building production plants locally.
Chinese firms that relocate to Thailand will be supported by the government policy to promote foreign investment. China's poor reputation for product quality has led many firms to relocate to countries such as Thailand. Rising labour costs in China is also seeing companies shift their operations elsewhere, he said.
Mr Viboon said he was confident Amata's strong relationship with Chinese investors will allow it to gain from the venture fund more than other industrial estate developers.
AMATA shares closed yesterday on the SET at 6.70 baht, down 10 satang, in trade worth 109.69 million baht.
The listed developer forecasts industrial land sales of 300 to 400 rai in the second half, after selling only 50 rai, a 74% year-on-year drop, in the first half.
"We have a number of potential customers on hand that have been negotiating for a long time. I am confident that these investors will finally conclude their purchasing deals with us within this latter half of the year," said director Viboon Kromadit.
"Investment decisions have been delayed for too long and improving economic indicators should bring interest."Amata's forecast assumes there will be no further political unrest to dampen investor sentiment.
The company is in discussions with investors from the agricultural, automotive and chemical industries, said Mr Viboon.
Land sales account for 38% of the group's income with the rest coming from utilities supply and rental charges.
Amata hopes to attract Chinese investors and benefit from a Chinese venture fund that will invest in Thailand.
Chinese investors are forming a 20- billion-yuan (100-billion-baht) fund to finance investments in Thailand. The fund, which will be finalised by year-end, will facilitate more Chinese companies building production plants locally.
Chinese firms that relocate to Thailand will be supported by the government policy to promote foreign investment. China's poor reputation for product quality has led many firms to relocate to countries such as Thailand. Rising labour costs in China is also seeing companies shift their operations elsewhere, he said.
Mr Viboon said he was confident Amata's strong relationship with Chinese investors will allow it to gain from the venture fund more than other industrial estate developers.
AMATA shares closed yesterday on the SET at 6.70 baht, down 10 satang, in trade worth 109.69 million baht.
Monday, August 24, 2009
CHARNCHAI DEFERS DECREE ON POLLUTION
The Industry Ministry yesterday postponed to the beginning of next month its decree for controlling industrial plants with serious environmental impacts.
"I have not approved the ministerial decree because it still lacks necessary details such as the size of the plant," Industry Minister Charnchai Chairung-ruang said.
"I have assigned agencies to find out more information on environmental rules in Canada and other countries like Japan, South Korea and Hong Kong," he said.
Approval of the ministerial decree had been expected yesterday in order to clarify the eight industries that will be required to complete the new form of environmental impact assessment (EIA) and the new health impact assessment (HIA), as stated in Article 67 of the Constitution.
The eight types of projects listed in the ministerial decree are: underground mines; lead, zinc and manganese mines; upstream and mid-stream petrochemical plants; steel blast furnaces; industrial estates accommodating upstream-midstream petrochemical plants and steel blast furnaces; power plants; nuclear power plants; and hazardous waste-treatment facilities.
However, industries that have an impact on the environment but are not listed in the ministerial decree will not be forced to pass the HIA, but only the EIA.
"I have not approved the ministerial decree because it still lacks necessary details such as the size of the plant," Industry Minister Charnchai Chairung-ruang said.
"I have assigned agencies to find out more information on environmental rules in Canada and other countries like Japan, South Korea and Hong Kong," he said.
Approval of the ministerial decree had been expected yesterday in order to clarify the eight industries that will be required to complete the new form of environmental impact assessment (EIA) and the new health impact assessment (HIA), as stated in Article 67 of the Constitution.
The eight types of projects listed in the ministerial decree are: underground mines; lead, zinc and manganese mines; upstream and mid-stream petrochemical plants; steel blast furnaces; industrial estates accommodating upstream-midstream petrochemical plants and steel blast furnaces; power plants; nuclear power plants; and hazardous waste-treatment facilities.
However, industries that have an impact on the environment but are not listed in the ministerial decree will not be forced to pass the HIA, but only the EIA.
Friday, August 21, 2009
Parents left in dark as children suffer from lead poisoning
Every parent in the village of Sunjianantou knows exactly how much lead is in their child's blood after 800 youngsters living near a smelting plant tested positive for lead poisoning this month.
But like millions of other Chinese villagers tight up against smelters,industrial plants and mines, the parents of Sunjianantou, in Shaanxi province,have very little idea of the dangers of lead poisoning, how it occurs, or how to avoid it. Nor are they likely to find out.
"Please tell us, can the lead ever go away or not?" asked the mother of Pengfei, eight, whose test results of 249 micrograms per litre explain how an active boy slowly turned pale and listless.
"We get our water from our family well. We have no idea if it is safe enough,or what to do about food. The government isn't testing adults, so we don't even know if we are poisoned too."
The acceptable level of lead in blood in the US is 10 micrograms per litre.
In China, the average level for children under six living in cities is 59.52 micrograms per litre.
This month, two cases of lead poisoning of children living near metal smelters came to light in Chinese villages thousands of kilometres apart, showing the prevalence of the problem.
Parents from Sunjianantou and other villages attacked the Dongling lead smelter this week, after hundreds of children living near the smelter tested with high lead levels.
On Aug 8, parents blocked a road and flipped a police car in Wenping town,southwestern Hunan, in protest against toxins from a manganese smelter.
In that town,1,354 children tested with blood lead levels of over 100 micrograms per litre.
A child who ingests large amounts of lead may develop anaemia, muscle weakness and brain damage. Where poisoning occurs, it is usually gradual.
Protests against pollution are increasingly common in China, though police normally try and nip them in the bud before they become violent.
In other cases, officials show up and mollify residents with promises of financial or other aid.
In Sunjianantou, parents who spoke with foreign reporters were visited by local officials and warned not to do so again. At least 10 police cars were stationed outside the idled smelter. A dozen more patrolled the main street.
"Mass incidents"- or riots and protests - sparked by environmental problems have been rising at a rate of 30%per year, said China's environmental protection minister, Zhou Shengxian.
At the same time, the boom in metal prices has made investment in mines and smelters very profitable, and dangerously polluting plants have sprung up across the Chinese countryside.
Local officials, who worry about losing a large taxpayer and employer and may even have a stake in the projects, often turn a blind eye to safety and environmental violations.
When protests or a crisis does occur,local governments react by shutting the plant, detaining troublesome villagers and paying the rest, or offering emergency medical treatment.
"When a problem bursts out in the media, the government suddenly 'solves'it," said Zhang Jingjing, a lawyer with the Centre for Legal Assistance to Pollution Victims."But that's usually not a good result, it's just a way to make the problem go away." She is trying to bring a lead poisoning case to court to set a precedent that could be used against polluting plants across China.
Children with relatively light poisoning are supposed to be treated at home, but such is the level of distrust of local government some parents are even unwilling to give their children the recommended medicine.
But like millions of other Chinese villagers tight up against smelters,industrial plants and mines, the parents of Sunjianantou, in Shaanxi province,have very little idea of the dangers of lead poisoning, how it occurs, or how to avoid it. Nor are they likely to find out.
"Please tell us, can the lead ever go away or not?" asked the mother of Pengfei, eight, whose test results of 249 micrograms per litre explain how an active boy slowly turned pale and listless.
"We get our water from our family well. We have no idea if it is safe enough,or what to do about food. The government isn't testing adults, so we don't even know if we are poisoned too."
The acceptable level of lead in blood in the US is 10 micrograms per litre.
In China, the average level for children under six living in cities is 59.52 micrograms per litre.
This month, two cases of lead poisoning of children living near metal smelters came to light in Chinese villages thousands of kilometres apart, showing the prevalence of the problem.
Parents from Sunjianantou and other villages attacked the Dongling lead smelter this week, after hundreds of children living near the smelter tested with high lead levels.
On Aug 8, parents blocked a road and flipped a police car in Wenping town,southwestern Hunan, in protest against toxins from a manganese smelter.
In that town,1,354 children tested with blood lead levels of over 100 micrograms per litre.
A child who ingests large amounts of lead may develop anaemia, muscle weakness and brain damage. Where poisoning occurs, it is usually gradual.
Protests against pollution are increasingly common in China, though police normally try and nip them in the bud before they become violent.
In other cases, officials show up and mollify residents with promises of financial or other aid.
In Sunjianantou, parents who spoke with foreign reporters were visited by local officials and warned not to do so again. At least 10 police cars were stationed outside the idled smelter. A dozen more patrolled the main street.
"Mass incidents"- or riots and protests - sparked by environmental problems have been rising at a rate of 30%per year, said China's environmental protection minister, Zhou Shengxian.
At the same time, the boom in metal prices has made investment in mines and smelters very profitable, and dangerously polluting plants have sprung up across the Chinese countryside.
Local officials, who worry about losing a large taxpayer and employer and may even have a stake in the projects, often turn a blind eye to safety and environmental violations.
When protests or a crisis does occur,local governments react by shutting the plant, detaining troublesome villagers and paying the rest, or offering emergency medical treatment.
"When a problem bursts out in the media, the government suddenly 'solves'it," said Zhang Jingjing, a lawyer with the Centre for Legal Assistance to Pollution Victims."But that's usually not a good result, it's just a way to make the problem go away." She is trying to bring a lead poisoning case to court to set a precedent that could be used against polluting plants across China.
Children with relatively light poisoning are supposed to be treated at home, but such is the level of distrust of local government some parents are even unwilling to give their children the recommended medicine.
Wednesday, August 19, 2009
PM okays industry permits
Investment projects waiting in the pipeline worth almost 400 billion baht have been given the go-ahead for permit approval with the support of Prime Minister Abhisit Vejjajiva, according to the Industry Ministry.
However, new projects categorised as harmful need to wait for permit guidelines to be finalised, said Sorayud Petchtrakul, an adviser to the Industry Minister. The public-private partnership committee chaired by the premier agreed to follow the Council of State's advice that state agencies can give permits to investment projects with environmental impact assessments (EIA).
Mr Abhisit is worried about halted investment projects left in the pipeline for too long, said Mr Sorayud.
The Industrial Works Department has 13 projects worth 59.5 billion baht waiting in the pipeline, while the Industrial Estate Authority of Thailand (IEAT) has 23 projects worth 323 billion baht seeking construction and operation permits in its industrial estates in Rayong province.
Ten of the projects before the Industrial Works Department are power plants, while those seeking permits through the IEAT include the steel,power plant and petrochemical sectors.PTT Aromatics' Euro4 diesel refinery is on the IEAT list.
"Now that we have the nod from the PM, the permit approval process should start immediately," said Mr Sorayud.
He added that operators who feared their permits would be against the Con-stitution should not worry as permit grantors are state agencies that exercise their authorities according to the PM's direction.
However, Suthi Atchasai, leader of the People's Eastern Network, threatened that if the cabinet endorsed the public-private partnership committee's decision, his network would oppose the government for acting against the Constitution.
He said the current Constitution took effect almost two years ago and the government has had sufficient time to form the guidelines but has neglected to do so. While the hurdles for EIAapproved projects are removed, new investment that falls onto the harmful list still needs to wait for guidelines to be formed that accommodate Section 67 of the Constitution.
No timeframe has been set for these guidelines, but the Industry Ministry has finalised the list of industries classified as harmful to the environment and community. There are 15 categories on the list, which will be made public when Industry Minister Charnchai Chairungruang signs a ministerial announcement on Monday, Mr Sorayud said.
He said the list would help investors prepare for additional environmental and health requirements.
Industries on the list will include underground mines, zinc, manganese and tin mines, upstream and midstream petrochemicals, upstream steel projects,radioactivity production or management, hazardous waste management,commercial airports with at least 1.5 kilometres of runway, seaports capable of accommodating at least 10,000 tonnes gross of hazardous air pollutants, dams,irrigation projects, power plants, nuclear power plants and genetically modified activities.
However, new projects categorised as harmful need to wait for permit guidelines to be finalised, said Sorayud Petchtrakul, an adviser to the Industry Minister. The public-private partnership committee chaired by the premier agreed to follow the Council of State's advice that state agencies can give permits to investment projects with environmental impact assessments (EIA).
Mr Abhisit is worried about halted investment projects left in the pipeline for too long, said Mr Sorayud.
The Industrial Works Department has 13 projects worth 59.5 billion baht waiting in the pipeline, while the Industrial Estate Authority of Thailand (IEAT) has 23 projects worth 323 billion baht seeking construction and operation permits in its industrial estates in Rayong province.
Ten of the projects before the Industrial Works Department are power plants, while those seeking permits through the IEAT include the steel,power plant and petrochemical sectors.PTT Aromatics' Euro4 diesel refinery is on the IEAT list.
"Now that we have the nod from the PM, the permit approval process should start immediately," said Mr Sorayud.
He added that operators who feared their permits would be against the Con-stitution should not worry as permit grantors are state agencies that exercise their authorities according to the PM's direction.
However, Suthi Atchasai, leader of the People's Eastern Network, threatened that if the cabinet endorsed the public-private partnership committee's decision, his network would oppose the government for acting against the Constitution.
He said the current Constitution took effect almost two years ago and the government has had sufficient time to form the guidelines but has neglected to do so. While the hurdles for EIAapproved projects are removed, new investment that falls onto the harmful list still needs to wait for guidelines to be formed that accommodate Section 67 of the Constitution.
No timeframe has been set for these guidelines, but the Industry Ministry has finalised the list of industries classified as harmful to the environment and community. There are 15 categories on the list, which will be made public when Industry Minister Charnchai Chairungruang signs a ministerial announcement on Monday, Mr Sorayud said.
He said the list would help investors prepare for additional environmental and health requirements.
Industries on the list will include underground mines, zinc, manganese and tin mines, upstream and midstream petrochemicals, upstream steel projects,radioactivity production or management, hazardous waste management,commercial airports with at least 1.5 kilometres of runway, seaports capable of accommodating at least 10,000 tonnes gross of hazardous air pollutants, dams,irrigation projects, power plants, nuclear power plants and genetically modified activities.
Tuesday, August 18, 2009
"Eco-towns" project a step closer to reality
The Industry Ministry plans to allocate more than Bt100 million to move its "eco-town" project to the next stage, with Map Ta Phut as a pilot location.
The project was initiated to encourage manufacturers to reduce toxic emissions and turn industrial waste into energy or value-added materials.
Plants located in an industrial estate, including Map Ta Phut, will plan together and create a supply chain to reprocess their waste as raw materials for one another.
This project was launched in 2007 to promote green industry. Two industrial estates will be developed as eco-towns by 2012 and eight more by 2017.
Federation of Thai Industries vice chairman Payungsak Chartsutipol yesterday said the Industry Ministry would report the project's progress to the public-private partnership meeting next Wednesday.
"This is an important and creative development project, because it will help ease local communities' |environmental concerns and add more value to industrial waste," he said.
Starting with Map Ta Phut, the ministry plans to expand this project to all industrial estates in the country, as well as create a cluster of eco-towns, particularly for small and medium-sized manufacturers, on an industrial estate in Ayutthaya or Samut Sakhon province.
"The amount of waste from each small and medium-sized plant is sometimes not worth transforming into renewable energy or insufficient to sell as a raw material to other plants.
The eco-town will be another solution for them," he said.
The plants in areas designated as an eco-town will be forced to release less waste and emit less pollution than required by law or regulations and to shift to using more recycled and reused materials.
The Board of Investment will consider additional tax incentives to attract manufacturers to join this project, he added.
Yesterday, the Industrial Promotion Department signed an agreement with the Japan External Trade Organisation to launch a "Japan Desk" in a bid to tighten trade and investment ties between local and Japanese manufacturers.
The three-year project will focus on the transfer of knowledge and technology and will develop Thai goods to meet the demands of the Japanese market, said Industry Minister Charnchai Chairungrueng.
The Japan Desk will also act as a consultant for Japanese operators who would like to expand and invest here.
The project was initiated to encourage manufacturers to reduce toxic emissions and turn industrial waste into energy or value-added materials.
Plants located in an industrial estate, including Map Ta Phut, will plan together and create a supply chain to reprocess their waste as raw materials for one another.
This project was launched in 2007 to promote green industry. Two industrial estates will be developed as eco-towns by 2012 and eight more by 2017.
Federation of Thai Industries vice chairman Payungsak Chartsutipol yesterday said the Industry Ministry would report the project's progress to the public-private partnership meeting next Wednesday.
"This is an important and creative development project, because it will help ease local communities' |environmental concerns and add more value to industrial waste," he said.
Starting with Map Ta Phut, the ministry plans to expand this project to all industrial estates in the country, as well as create a cluster of eco-towns, particularly for small and medium-sized manufacturers, on an industrial estate in Ayutthaya or Samut Sakhon province.
"The amount of waste from each small and medium-sized plant is sometimes not worth transforming into renewable energy or insufficient to sell as a raw material to other plants.
The eco-town will be another solution for them," he said.
The plants in areas designated as an eco-town will be forced to release less waste and emit less pollution than required by law or regulations and to shift to using more recycled and reused materials.
The Board of Investment will consider additional tax incentives to attract manufacturers to join this project, he added.
Yesterday, the Industrial Promotion Department signed an agreement with the Japan External Trade Organisation to launch a "Japan Desk" in a bid to tighten trade and investment ties between local and Japanese manufacturers.
The three-year project will focus on the transfer of knowledge and technology and will develop Thai goods to meet the demands of the Japanese market, said Industry Minister Charnchai Chairungrueng.
The Japan Desk will also act as a consultant for Japanese operators who would like to expand and invest here.
EGAL HURDLE DELAYS PROJECT APPROVALS
Authorities have further delayed the approval of 16 petrochemical, power-plant and other industrial projects in Rayong province worth a combined Bt60 billion.
Industry Ministry permanent screatary Damir Sukhotanang said a decision on whether these schemes should go ahead would be made at the public-private partnership meeting. The forum, sheduled for next Wednesday, will be chaired by the prime minister.
Earlier, the ministry was due to issue licences for these schemes in the Map Tha Phut Industrial Estate and other areas around Rayong this week.
However, it delayed the issue of licences, due to concerns about the legality of the interpretation of a recently issued Royal Decree, which empowers the agency to give the green light to projects that have already passed an environmental-impact assessment (EIA).
The ministry's Industrial Works Department (IWD) was expected to clear the legal hurdle within a week.
In addition, the Industrial Estate Authority of Thailand (IEAT) is also awaiting approval for three heavy-industry projects: a Bt1.8-billion project by Siam Tinplate, a Bt1.3-billion project by PTT Aromatics and Refining and a Bt270-million petrochemical project by the Aditya Birla Group.
"We [the IWD and the IEAT] need to head in the same direction and treat investors on an equal basis," said IEAT governor Monta Pronootnorapal.
The Consititution's Article 67 stipulates industrial projects are required to pass health-impact assessments (HIA) before receiving licences.
Earlier, both the IWD and the IEAT thought they could give operating and construction licences to projects that had already passed the more comprehensive EIA, because the HIA was part of the EIA process.
Meanwhile, the Federation of Thai Industries (FTI) will ask the government to clarify laws and regulations at both local and the central government levels, so that industrial schemes that impact the environment can be managed more efficiently.
FTI vice chairman Payungsak Chartsutipol said most delays in investment projects were due to unclear laws and regulations.
"It's necessary to clarify the rules and regulations as soon as possible, because foreign in vestors don't like grey areas," he said.
Industry Ministry permanent screatary Damir Sukhotanang said a decision on whether these schemes should go ahead would be made at the public-private partnership meeting. The forum, sheduled for next Wednesday, will be chaired by the prime minister.
Earlier, the ministry was due to issue licences for these schemes in the Map Tha Phut Industrial Estate and other areas around Rayong this week.
However, it delayed the issue of licences, due to concerns about the legality of the interpretation of a recently issued Royal Decree, which empowers the agency to give the green light to projects that have already passed an environmental-impact assessment (EIA).
The ministry's Industrial Works Department (IWD) was expected to clear the legal hurdle within a week.
In addition, the Industrial Estate Authority of Thailand (IEAT) is also awaiting approval for three heavy-industry projects: a Bt1.8-billion project by Siam Tinplate, a Bt1.3-billion project by PTT Aromatics and Refining and a Bt270-million petrochemical project by the Aditya Birla Group.
"We [the IWD and the IEAT] need to head in the same direction and treat investors on an equal basis," said IEAT governor Monta Pronootnorapal.
The Consititution's Article 67 stipulates industrial projects are required to pass health-impact assessments (HIA) before receiving licences.
Earlier, both the IWD and the IEAT thought they could give operating and construction licences to projects that had already passed the more comprehensive EIA, because the HIA was part of the EIA process.
Meanwhile, the Federation of Thai Industries (FTI) will ask the government to clarify laws and regulations at both local and the central government levels, so that industrial schemes that impact the environment can be managed more efficiently.
FTI vice chairman Payungsak Chartsutipol said most delays in investment projects were due to unclear laws and regulations.
"It's necessary to clarify the rules and regulations as soon as possible, because foreign in vestors don't like grey areas," he said.
Govt under fire over impact agency delay
An environmental advocacy group has accused the cabinet and a senior bureaucrat of ignoring a constitutional rule requiring an independent agency to be set up to investigate sensitive industrial projects.
In a complaint to the ombudsman,Srisuwan Janya, chairman of Stop Global Warming Association, says the cabinet and Environment Ministry permanent secretary Saksit Tridech are dragging their feet in establishing the independent agency.
The cabinet and Mr Saksit were being lax in following the requirements of Article 67, which could affect people living close to heavy industry zones.
Article 67 prohibits any project or activity which might damage the environment, natural resources or biological diversity until the impact on the environment and the health of people in nearby communities had been evaluated.
The public and interested parties must be consulted. It also requires an independent agency to be established.
The ministry ordered the Department of Environmental Quality Promotion and related agencies to draft a bill to set up the agency.
Mr Saksit dismissed the complaint,saying the bill was in the pipeline.
"We are waiting for more comments from relevant agencies," he said.
In a complaint to the ombudsman,Srisuwan Janya, chairman of Stop Global Warming Association, says the cabinet and Environment Ministry permanent secretary Saksit Tridech are dragging their feet in establishing the independent agency.
The cabinet and Mr Saksit were being lax in following the requirements of Article 67, which could affect people living close to heavy industry zones.
Article 67 prohibits any project or activity which might damage the environment, natural resources or biological diversity until the impact on the environment and the health of people in nearby communities had been evaluated.
The public and interested parties must be consulted. It also requires an independent agency to be established.
The ministry ordered the Department of Environmental Quality Promotion and related agencies to draft a bill to set up the agency.
Mr Saksit dismissed the complaint,saying the bill was in the pipeline.
"We are waiting for more comments from relevant agencies," he said.
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