ASEAN KEY DESTINATIONS
Agri-giant to expand in China, Vietnam
Thanakorn Seriburi, chairman and CEO of the automotive industrial products business group (China) of CP Group, said next year it plans to team up with Luoyang city in Hainan province to develop a super complex on 115 rai of land. It will comprise two each of 60-storey and 40-storey buildings that will feature condominium units, a shopping centre, an entertainment complex, a hotel, an exhibition centre and government offices, including customs, a clearing house and other public services.
Construction of the complex will cost about 15 billon baht and kick off next year, with an expected completion date of six years. The group expects the project will break even three years after commercial operation.
Mr. Thanakorn added the group also plans to list Shanghai Kinghill Co. on the Shanghai stock market in early 2011 to mobilise funds to expand its retail and property-development business in China.
Shanghai Kinghill operates Super Brand Mall, one of Asia's largest entertainment complexes. Located in Pudong, Shanghai's economic zone, the mall covers 400,000 square metres. CP was the first foreign investor in China. For more than 40 years it has poured billions of dollars into shopping malls, the poultry industry, animal feed and motorcycle plants. The group's retail operations consist mainly of the nationwide Lotus Supercenter chain and the Super Brand Mall in Shanghai.
Sarasin Viraphol, the group's executive vice-president, said next year it plans to invest 20 billion baht in chemical-free vegetable production and distribution businesses on 8,000 rai at Cixi city in China's Zhejiang province, using sophisticated technology from plantation processes to harvesting to supply consumers mainly in Shanghai.
The project is to be further developed as an eco-tour and theme park. Mr. Thanakorn said CP's businesses in China are expected to generate income of US$6 billion this year, a gain of 10-15 percent from last year. Next year's growth rate is forecast to be the same as this year.
In a related development, Sooksunt Jiumjaiswanglerg, executive vice-president of the agro-industry and food business group in Vietnam, said CP planned to set up four more animal and shrimp feed plants in Vietnam, as well as processing plants over the next five years. This increase from five plants will raise production capacity to 4 million tonnes a year from 2.5 million.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below