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Published on September 7, 2007

The state-owned enterprise has assigned its consulting firm to look for a site in the Central region for the Bt21.77-billion project, she said.

The study should be completed by next month and then forwarded to the Cabinet for approval.

The Cabinet earlier abandoned plans to build the new factory in Chiang Mai. It also terminated a government-to-government contract with China, under which that country's Yunnan Corp for International Techno-Economic Cooperation would have constructed the facility.

The Finance Ministry will hold an international bidding once the new site is chosen, Prapassorn said.

The new plant is designed to churn out 30 million to 35 million cigarettes annually.

Cigarette-rolling machines will be imported from Europe, while Chinese machinery could be applied to other parts of the production line, she said.

The new site will have a logistical advantage, because 57 per cent of all cigarette sales are in the Central region, she said. Cigarette sales in the North account for 11 per cent, while the Northeast contributes 19 per cent and the South 13 per cent.

Cigarette consumption is expected to drop off in the next five years, due to the government campaign against smoking.

Current sales are 29 billion cigarettes annually, she added.

The Nation