Khon Kaen Sugar Launches New Mill Worth 30,000 Million Baht by 2021

Khon Kaen Sugar Industry Public Company Limited (KSL) is now ready to establish a new sugar mill on an area of over 2,000 Rai in a special economic zone of Sra Kaew. Operated under the title, New Kwang Soon Lee Sugar Factory Co., Ltd, the new mill will, at the initial stage, manufacture sugar and generate biomass electricity. The KSL will submit an EIA report for permission to launch it with a capital investment of 30,000 million Baht. Construction will start in 2021, resulting in a total of 57 local sugar mills in Thailand.

Mr. Wirit Wisetsin, the Deputy Secretary-General of the Office of Cane and Sugar Board (OCSB), informed the press that, lately, the Supreme Court of Thailand had ordered the Industry Ministry to approve a request made by the Sugar New Kwang Sun Lee Co. Ltd., a subsidiary of KSL, to set up its mill in Sra Kaew. Although there will be a total of 57 sugar mills in the country, in the period of 2019/2020, existing 55 sugar mills will function on cane extraction of 110 million tons.

Mr. Chalush Chinthammit, the Deputy Managing Director of KSL, added that the company would soon submit the EIA report for a permission of sugar mill establishment from the Department of Industrial Factories. It is expected to complete within 1 year and, in 2021, construction of the new sugar mill will cost between 15,000 – 30,000 million Baht.

Nevertheless, an investment plan is required to change a bit to cover all aspects because it is more difficult to make the EIA. As the project’s status has to be updated, any project deemed suitable will be prioritized. For instance, a sugar mill with a capacity of 35,000 ton per day production must be done first, followed by a project of a 90-megawatt biomass electricity generating plant as well as a plan for Halal food manufacturing.

“Constructing an ethanol factory and bioplastic industry requires more time. Despite investment promotion from Board of Investment for bioeconomy industries, I think that it is not a focus because the industry concentrates on market demand, doesn’t it?,” said Mr. Chalush.

As a result, according to the study of over 8 years, the KSL is planning to carry out a project on development of ecology-based industry area and Halal park on a 2,000 Rai land. The project is divided into 3 phases. The 1st one includes constructing a 35,000 ton per day sugar mill and 90-megawatt biomass electricity generating plant within 3-5 years. The 2nd phase features an ethanol factory of 200,000 liters per day and biogas production within 5-7 years. The last one aims to invest in continuous industries, especially bioplastic and biochemistry with relations to Halal food, sweets, processed vegetable and fruit, dairy products and herbal drinks within a decade. No less than 10 industrial allies will join the project of all phases.

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