July 25, 2007

 

CPF expands to Laos to make the best of baht's appreciation

 

 

Thai agri-food giant CPF has opened its feedmills in Vientiane, Laos a few days after it announced it would set up feedmills in Pakistan.

 

CPF' CEO Adirek Sripratak revealed that the Laos investment is a part of CPF's expansion plan in Asia. The company plans to run integrated businesses, including feedmills and livestock farms as well as aquaculture businesses and further processing business for exporting to other countries.

 

The company received a 20-year lease from the country to run animal farms and other businesses.

 

CPF will bring advanced technology, useful knowledge in producing quality meat and beneficial techniques in aquaculture to Lao's agri-industry.

 

In addition, it would contribute to the improvement of Laotian diet by providing high quality, nutritional and safe protein sources. .

 

C.P.Laos Co has a registered capital of US$3 million and would run a 6,000-tonne per month feedmill, along with swine, chicken and fish farms. 

 

CPF is on an expansion binge as it plans to invest two billion baht (US$67 million)  in overseas projects this year and source more raw materials abroad to benefit from the baht's appreciation against the US dollar.

 

CPF has expanded in Vietnam, Turkey, China, India, Malaysia, Russia, Laos and the Philippines.

 

CPF president and CEO Adirek Sripratak said that offshore investments were among several measures to reduce risk from baht appreciation, which has hurt Thai exporters.

 

The baht has risen almost 8 percent against the US dollar so far this year. CPF suffered a loss-making first quarter this year partly due to the baht's strength as the bulk of its revenue laid in exports.