Thursday, November 19, 2009

Bangkok Bank supports 3 KSL projects valued at more than Baht 8 billion

Bangkok Bank is providing Baht 8,134 million of financial support to Khon Kaen Sugar Industry (KSL) to invest in 3 new projects at Bo Ploy District, Kanchanaburi Province.


Bangkok Bank Senior Executive Vice President and Head of Corporate Banking, Chansak Fuangfu, said Bangkok Bank has signed an agreement to provide loans of Baht 8,134 million to Khon Kaen Sugar Industry (KSL) and its subsidiaries, including New Krung Thai Sugar Factory Co., Ltd., Khon Kaen Sugar Power Plant Co., Ltd and Khon Kaen Alcohol Co., Ltd.

Mr. Chansak added that under the loan agreement, New Krung Thai Sugar Factory Company will use the funds to relocate its sugar mill from Tamaka District to Bo Ploy District, Kanchanaburi Province, and expand its production capacity, from 8,385 tons of cane per day (TCD) to 20,400 TCD. The sugar from this factory will be distributed to large food and beverage manufacturers in Thailand and other countries as a key ingredient of their products. Major export markets are Indonesia, Japan, the Philippines, Russia and China.

In terms of alternative energy investment projects, the Khon Kaen Sugar Power Plant Company will build its second plant with an electricity production capacity of 90 MWH using biomass and biogas as raw materials. The company will sell electricity and steam to the Electricity Generating Authority of Thailand and KSL’s subsidiaries.

The third and final project under this agreement is Khon Kaen Alcohol Company’s construction of a second plant. This plant will produce up to 200,000 litres of ethanol per day from molasses and other waste products from sugar production process. Ethanol is mixed with gasoline to make the vehicle fuel, gasohol.

“KSL Group’s investments increase sugar productivity and add value to the by-products of sugar manufacturing,” concluded Mr Chansak. “The company’s investment in value-added projects also supports the government’s energy and environmental policies. Sugar production is one of Thailand’s core industries and Thailand is the second-largest sugar exporter after Brazil, exporting mainly to countries in Asia.”

Thursday, November 12, 2009

Stoppage hits Glow's Q3

       The SET-listed power producer Glow Energy saw earnings slow in the third quarter due to a one-month maintenance closure of one of its plants.
       Two factors caused its normalised net profit to drop to 899 million baht in the third quarter, down by 274 million from the second quarter, the company said in its statement.
       Reduced power output due to a onemonth maintenance closure at its 150 MW coal-fired station affected te thirdquarter performance.
       The quarter's results also weakened as Glow had not booked the business interruption liability for a stoppage earlier this year at the 150 MW station.
       Output is expected to return to normal in the final quarter as there are no more major maintenance stoppages scheduled until late 2011. The company also plans to book the remaining business inter-ruption claim of more than 100 million baht in the fourth quarter.
       Glow reported sales of 26.6 billion baht over the first nine months, up 3.3%year-on-year from 25.7 billion. But its net profit fell by 5% from the same period last year to 3.04 billion baht.
       Chief executive Esa Heikanen said higher interest payments of 705.5 million baht, up from 605 million last year, from increasing project finance caused the weaker performance. Fuel costs also rose by 2.8% for natural gas and 1.8% for coal.
       However, Mr Heikanen said that performance declined at a slower pace than the rise in costs, thanks to revitalised sales to industrial customers.
       Shares of Glow closed yesterday on the Stock Exchange of Thailand at 33 baht, up 3 baht, in trade worth 41.53 million baht.

Egco profit steady

       The Electricity Generating Plc (EGCO) reported a steady net profit in the third quarter, with profit growth for the nine-month period,thanks to additional capacity.
       Thailand's first private power producer posted a consolidated net profit of 2 billion baht, unchanged from a year earlier. Nine-month consolidated net profit was 6.65 billion (12.64 baht a share), up from 6.26 billion baht (11.91 baht a share).
       This year, the company gained more income from new capacity at its Kaeng Khoi 2 Unit 2 plant, which started operations in February.
       However, performance was affected by lower electricity sales of subsidiaries Rayong Electricity Generating Co (Regco) and Khanom Electricity Generating Co (Kegco), caused by a reduction in the base availability credit; and lower service income from Egco Engineering & Service Co Ltd.
       Since late last year, Egco has focused on expanding in Asean countries to maintain profit and revenue at a time of lower demand in Thailand. It also is looking to acquire new fuel-related and renewable energy businesses locally.
       Egco Group has 13 plants with 3,980.7 MW, representing 12.3% of Thailand's total installed capacity.
       Egco shares closed yesterday on the SET at 75.25 baht, up 25 satang,in trade worth 14.5 million baht.

Banpu profit rises 22%

       The coal miner Banpu Plc reported thirdquarter profits of 3.8 billion baht, an increase of 22% from the same period last year.
       Consolidated nine-month net profit jumped 68% from the same period last year to 12.58 billion baht.
       In a statement to the Stock Exchange of Thailand, the company said its thirdquarter revenues fell 3% year-on-year to 13.9 billion baht, due primarily to lower coal prices. Coal sales totalled 12.8 billion baht, down 4% year-on-year and representing 92% of total revenue.
       Coal sales volume in the quarter was 5.31 million tonnes, up 15% year-onyear and up 18% from the previous quarter thanks to increased production at its Indonesian mines. Average selling prices for the quarter were $69.49 per tonne, a decline of 17% year-on-year and 6%quarter-on-quarter due to lower market prices and quality of coal.
       Quarterly profits included a gain of 1.03 billion baht from financial derivatives on coal swaps and 109 million from oil hedging and interest-rate swaps.
       Total reserves at the end of September were 581.37 million tonnes, compared with 588.1 million at the end of June.
       Shares of Banpu closed yesterday on the SET at 448 baht, down two baht.

Wednesday, November 4, 2009

SAMSUNG HAS BT4-BN PLAN TO UP MARKET SHARE

       Thai Samsung Electronics will invest around Bt4 billion to increase proฌduction capacity and research and development next year to boost its share in the segments in which the brand is not a market leader.
       Deputy managing director Arnut Changtrakul yesterday said the Board of Investment (BoI) had proฌmoted Thai Samsung's investment.
       The investment of Bt4 billion will cover R&D, new machines and new mole to develop new innovative products and increase production capacity for four products - refrigerators, frontloaded washing machines, airconditioners and TV monitors at the existing plants at Sriracha, Chonburi province.
       The investment could help create 500 to 1,000 jobs next year. Currently it employs 5,000 people.
       Samsung's Sriracha plant is a major production base for Samsung electronics products such as LED TV, LCD TV, refrigerators, washing machines, air conditioners, and microwave ovens.
       Of the total production at the Sriracha plant, about 30 per cent goes to the domestic market and the rest are exported to Southeast Asia and the Middle East.
       The segments in which Thai Samsung is not the market leader are refrigerators, frontloaded washฌing machines, airconditioners, notebooks, digital cameras and mobile phones. However, Samsung expects to emerge as market leader in the mobilephone market by the yearend.
       Samsung will be the first interฌnational brand to do TV mobile phones, starting next year.
       Samsung ranks third and fourth in refrigerator, front loaded washing machines, air conditioner, notebook and digital camera.
       Arnut said the company's goal next year is to boost shares in those segments or at least go up by one rank. aMoreover, Samsung has to secure the position in the top tier in all segments.
       Samsung is currently the market leader in LED TV, LCD TV, PDP TV, Slim TV, sidebyside refrigerator and LCD monitor.
       He said Samsung next year will focus more on the segment that the brand does not market leaders.
       "We have five keys to success: new technology, value for money, potenฌtial distribution, brand creation and aftersales services," he said.
       He said the focus on products in which Samsung is not the market leader will also boost domestic revenue next year. Thai Samsung is targeting domestic sales worth $1.5 bilฌlion (Bt50.1 billion) compared to expected sales of $1 billion this year.
       "We expect our sales to increase next year because of the positive signs of the global economic recovฌery. Moreover, Thai consumer conฌfidence index in the fourth quarter this year is likely to be positive at 1.5 per cent from negative earlier this year.
       Thai Samsung expects the consumer confidence index to continue improving to 34 per cent in the first quarter next year," said Arnut.
       The US gross domestic product is expected to grow by 3.5 per cent next year. This is a positive sign for the export market as well, Arnut said.
       The company is targeting exports of $1.6 billion next year from the expected $1.3 billion this year.

Community forests capture hearts, minds

       Ratchaburi Electricity Generating Holding Plc joins forces with Thailand's Royal Forest Department to develop a new generation of woodland guardians
       Story and photos by PURICH TRIVITAYAKHUN CHIANG MAI
       During a brief discussion before he rejoined his group, Kiettisak Jaiban, 13, said that he had never been more enthused to protect and preserve his "community forest". He and his campmates were preparing to present their findings after hours of trekking in a forest in Chiang Mai province.
       Kiettisak was one of the many students at the camp who came from communities located near a forest. Such communities have been benefiting from their forests generation after generation. When the camp came to an end, all of the other attendants probably felt the same way as Kiettisak did - that the preservation of community forests is one of their vital tasks as good citizens. Camp foliage
       Kiettisak made his comments at an event that took place last month. The Royal Forest Department, in collaboration with Ratchaburi Electricity Generating Holding Plc ("Ratch"), had arranged for 80 high school students from Ratchaburi province and three other northern provinces - Chiang Mai, Mae Hong Son and Lamphun - to participate in the "Kla Yim Youth Camp".(Kla yim usually means dare to smile, but this phrase can also be a play on words to mean "smiling sprouts", as in encouraging youths to smile.)
       The camp, one of the activities carried out in the "Love the Forest and the Community" campaign, was initiated by the two entities. The Young People Development Centre was involved as co-organiser of the camp, which was held in Doi Suthep-Pui National Park, a reservation adjacent to Chiang Mai city.
       "This is the second time that we are holding this kind of camp," said Prayut Thongsuwan, Ratch's executive vicepresident of corporate administration.This year, most of the campers had been selected from communities that use community forests, whereas last year most of the campers were students from Bangkok.
       "We wish to foster a sense of environmental awareness among youngsters so that they will love and protect local natural resources. The most important objective of this camp is to attain a new generation that will continue the work of the current generation in taking care of community forests. We believe that in this way, we can effectively and efficiently ensure the long-term existence of community forests," Mr Prayut explains. For posterity
       Currently, Thailand has approximately 90 million rai (14.4 million hectares)covered by forests. Of this area, around 2.7 million rai (432,000 hectares) are designated as community forests, which fall under the responsibility of 7,700 communities scattered all over the country.Nearly half of the community forest land,or approximately 1.3 million rai (208,000 hectares), is in the northern region of Thailand.
       The crux of the community forest concept, according to Pralong Dumrongthai, director of the Community Forest Management Bureau in the Royal Forest Department, is to foster the well-being of the people who live in the communities adjoining or surrounding such forests.
       Human activities inside forest reserves,such as national parks and wildlife sanctuaries, are strictly controlled by the government. In contrast, a community forest is that part of a national reserve where the community of people living nearby is permitted by the government to benefit from the forest's resources.
       However, activities that are actually carried out inside the community forest have to be approved and supervised by the Royal Forest Department and a community committee responsible for the community forest.
       "We want to reduce the household expenses of the local residents and increase their income," said Mr Pralong."That does not mean, however, that the focus is on encouraging the communities to only sell products obtained from their forests. On the contrary, we have a programme of activities that stresses the need for them to maintain and protect these natural treasures as they are the ones benefiting from them, and we hope that they will respond positively," he added.
       At the camp, Mr Pralong gave a presentation on the overall objectives of establishing community forests. Green food bank
       Personal experience is worth more than a thousand words. One of the ranges of activities at the camp was the visit by campers to the Ban Talad Khilek community forest in Doi Saket district, to the northeast of Chiang Mai city.
       Even though many campers have been living around forests all their life, this was a good opportunity for them to gain hands-on experience about the functions of forests and how experts manage them.
       There, the campers trekked a twokilometre trail through a forest in bloom at the end of the rainy season. They spotted wild flowers, orchids, mushrooms and herbs like Do Mai Ru Rom , the prickly-leaved elephant's foot plant;Sab Sua , or bitter bush;Makham Pom , the Malacca tree; and many other types of vegetation.
       Along the walk, committee members of the Ban Talad Khilek community forest were present at several stations to dispense information to the youngsters upon their arrival there. The information provided at the stations covered topics like the functions of check dams and the management of herbs and bamboo.
       "The villagers now earn higher incomes than they did before," said Somboon Thaiyanto, head of the Ban Talad Khilek community forest committee and the chief guide who led the students through the forest.
       Various products from the forest, such as herbs and mushrooms, are collected and sold among the villagers themselves."We don't want them to sell these items to outsiders because the forest will cease to be sustainable if the products are commercialised," said Mr Somboon.
       "A long time ago, outside investors carried out logging in the area. Nowadays,the villagers help preserve the forest.We have to do this for our children," he added.
       Mr Somboon said that what he hoped the campers gained from their visit was not only knowledge about the forest,but also an appreciation of the importance of the ideas for managing a community forest, so that the youngsters would carry on the concepts learned at Ban Talad Khilek and apply them to local community forests.
       After returning from the community forest, the next day the young campers had the chance to trek through the forest in Doi Suthep-Pui National Park to observe the differences between the two forests. Besides trekking and learning more about different kinds of forests,the campers engaged in several other activities that raised their awareness of environmental conservation. Friends of the forests
       "The healing powers of local herbs are the same as those of expensive foreign medicines!" Ngamsiri Kladnuam said excitedly upon learning about the properties of several herbs found in the Ban Talad Khilek community forest.
       "I've seen many herbs that I cannot find in my community. For example,the fruit of the Malacca tree can alleviate thirst and sore throats, and Sab Sua can stop bleeding," said Ngamsiri, revealing her newfound knowledge enthusiastically."Check dams can prevent floods,act as water reservoirs, and maintain the moisture in forests. On special occasions, community members gather to help each other build a check dam.This fosters local harmony, too."
       Unlike Kiettisak, who lives in Chiang Mai, this 14-year-old girl from Ratchaburi does not live near any forest and had never attended a forest camp before.Her participation in last month's camp has made her permanently aware of what it means to go "green". She said that when she returned home, she would take steps to promote in her school the creation of more green areas in her neighbourhood, as well as tell her schoolmates about the many benefits of forests.
       As for Kiettisak, he said that when he returned to his home in Mae Rim district,he would inform as many of his fellow community members as possible of how everyone could effectively manage a satisfactory level of income from selling herbs, vegetables and mushrooms plucked from their community forest."Right now, we mostly consume all of the products that we collect and sell only a small portion [to outsiders]," said the child who has grown up alongside a forest."At the camp, I learned the names of many more plants and herbs, what their properties are, and how to grow and use them."
       Kiettisak agreed that the camp added to his knowledge."I will return home and try my best to disseminate what I have learned from this camp to my friends - such as, information on rare and new kinds of herbs, and how to grow, use and preserve them," Kiettisak promised,adding that he would spread the news in his school first and later try to find ways to expand the coverage to include his entire community. Future devotees
       Ratch has stated that the company is willing to support the youngsters if they want to initiate future projects or actions to preserve their community forests after they return to their communities.
       In the end, these little hands will one day become a major force in ensuring the continued existence of community forests, thereby enabling humans and nature to successfully exist together in harmony.
       "People and forests have to depend on one another. If we don't have forests,it will be very difficult for us to survive or earn a living. If the forests don't have people who love and understand them,they will be unprotected from the risks of abuse and destruction," said Kiettisak.