
Currently, the regulations cite that an operator can expand or set up dyeing and tanning facilities only in industrial estates because of the negative environmental impact of the business.
However, most garment and leather plants are located outside industrial estates. Therefore, this regulation encourages few manufacturers in the garment and leather industries to expand their production in upstream processes because it is not logistically and financially viable.
Deputy Industry Minister Piyabutr Cholvijarn said the country's shortage of upstream plants meant increased production costs for manufacturers because they had to send their goods to dye and tan in other countries.
Thus, the revision would help cut their costs and boost their competitiveness with Vietnam and China, he added.
He said the new ruling would allow current operators to expand an upstream plant in their existing plant's area without seeking approval.
Chalida Ekvitthayavechnukul
The Nation