September 4, 2009

The Charoen Pokphand Group has invested THB3 billion (US$88.1 million) for setting up a new integrated food production plant in Binh Doung, Vietnam, as part of its strategy to penetrate overseas markets.

Sarasin Viraphol, the group's vice chairman, said the investment plan will include feedmill, integrated chicken business from farm to processed foods.

In the beginning, the production will cater to the domestic market. Exports will be considered later.

Sarasin said food production in the country has a bright future as CP Group has advanced technology for food safety standards compared with local investors.

The company said the feedmill's production capacity will achieve 600,000 tonnes per year.

Meanwhile, pursuing its strategy of penetrating the Middle East market, the company has set up a special committee to study the possibility to increase exports to the region.

Sarasin said economies of countries in the Middle East will grow considerably as oil prices go up.

He said the market will have higher demand for food and that the company aims to export fresh chicken, shrimp, and eggs to the market.

It is expected that the feasibility study will be completed in a few months so that the firm can promptly start exporting many food products to the market.

So far, the company has signed a farming contract with Bahrain for supplying food products, he added.