The new factory will cost Bt185 million to Bt200 million. Construction began in September and is expected to be complete next March.

All of the company's existing biscuit production will then be moved from its Sri Racha plant to the new complex, doubling current biscuit output from 21 tonnes a day to more than 42 tonnes.

The new biscuit factory will be fully operational next July.

Thai President Foods director and president Pipat Paniangvait yesterday said the transfer of biscuit production from Sri Racha to Rayong would allow the firm to maximise use of its instant-noodle facility in Sri Racha.

"We'll invest another Bt100 million in our instant-noodle facility by installing a new high-speed machine that will increase our production 30-40 per cent," said Pipat.

The new machine will produce about 50,000 packs of Mama instant noodles an hour, four times more than existing machinery in the Sri Racha plant. It currently has 12 instant-noodle machines, each with a production capacity of 12,500 packs per hour. The new machine will pay for itself within five years.

In May, Thai President Foods announced the buyback of its entire stake in TM Foods, its joint venture with Myojo Foods of Japan. TM Foods rented the Thai President Foods land plot in Rayong.

Pipat said the buyback of TM Foods' high-end factory would support the group's existing facilities not only in Sri Racha, but also in Lamphun province and Bangkok's Nong Khaem district, which are now operating at almost 90-per-cent capacity, on a two-shift basis.

He said bringing TM Foods' Rayong factory under the Mama umbrella would help increase production of Mama instant noodles from 5 million packs a day to more than 6 million.

"The expansion of our instant-noodle facilities will cater for higher exports to the US, Europe and [elsewhere in] Asia," Pipat said.

The company has changed its export strategy of serving Indochinese communities living abroad to creating new groups of customers in foreign markets.

Pipat said the company would target new customer groups for its instant noodles, such as Hispanics in the US and Jews in Israel, marketing kosher products for the latter.

"We'll enter new mainstream outlets, such as hypermarkets, in both the US and Europe," Pipat said.

The company plans to increase its export sales from about Bt1 billion expected this year to more than Bt1.6 billion next year.

Thai President Foods expects its total instant-noodle sales, including exports, to reach Bt6 billion this year and about Bt7 billion next year.

The company recently increased its stake in Dai-ichi Packaging from 49 per cent to 51 per cent and in beverage manufacturer Thai Sun Foods from 49 per cent to 52 per cent, making both of them new subsidiaries in Thai President Foods' business portfolio.

Kwanchai Rungfapaisarn

The Nation