Buriram Sugar is confident that the cane input of the 2017 production season will reach 2.9 million tons, pushing sugar output to 330,000 tons or an equivalent of 32% growth, with selling prices rising to 19 cent/pound. Sugar prices will also see a bright prospect. Buriram Sugar recently announced that it will venture into the bagasse industry by starting a new company and investing millions in power plants and processing factories, with a one-billion baht budget earmarked for this project.
Mr. Anant Tangtongwechakit, Chairman of Executive Committee of Buriram Sugar Public Company Limited (BRR) revealed that 2018 will be another golden year for BRR because the sugar cane input will still reach the target of 2.8 – 2.9 million tons and the sugar production volume will reach 330,000 tons or 32% higher than the previous year. Also, the company has completed more than 80% of sales contracts with a fixed selling price of 19 cent/pound by 30%, a satisfactory rate.
In addition, Buriram Sugar is also producing VHP sugar or brown sugar in sacks, both of which are in high demand in foreign markets and can fetch good selling prices.
For future investments, Mr. Anant revealed that necessary studies have already been conducted. The construction of a sugar refinery can be readily initiated, with output expected to reach the market in the 2018/2019 season. For the biomass industry, the company is ready to file a bidding when the government calls for bidders because it is ready in terms of raw materials. Also, there are also other investment plans to increase the profits in the future.
Recently, Buriram Sugar Public Company Limited has announced that it has established a subsidiary called “Sugarcane Ecoware Co., Ltd” with registered capitals of 5,000,000 baht, with BRR holding 99.99% of the shares. The objective of the new company is to invest in bagasse containers. This new company will register its establishment in the first quarter of 2018. The main businesses will be commodity products, tools, and utensils made from bagasse and other natural materials, as well as retailing, wholesaling, import, and export.
Mr. Patrapong Pongsawat, Deputy Managing Director at Buriram Sugar PCL, indicated that the company decided to invest in the bagasse container industry because of its vast business opportunities thanks to the trend of environmental consciousness. In addition, the market for these biodegradable containers is huge and the margin is very high. It is a way to make use of by-products from sugar production to create added value, in line with the company’s policy to maximize the use of resources in sugar production.
The investment value in the bagasse container business is expected to reach hundreds of million baht. For this investment, the company has earmarked around one billion baht.