Politics is politics, business is business – it’s not relevant – and we do business, not politics.Why did Khon Kaen Sugar Industry Plc decide to invest in a sugarcane plant and plantation in Koh Kong province?
We realised that Cambodia has more available area for its agriculture base, a climate similar to Thailand ... suitable for sugarcane-growing.
Moreover, we were determined to develop an agriculture business and agro-industry in Cambodia to serve the ASEAN market and Asia.
Companies have gotten privileges under investment-promotion measures of the Cambodian government … 90-year concessions for sugarcane plantation areas of 20,000 hectares … in Koh Kong [province], [and] tax incentives.
The company has also gotten a privilege to export raw sugar to the EU under the EBA (Everything but Arms) quota.
We have confidence that – this project – it can contribute to and generate GDP growth, economic development, income distribution and employment in Cambodia.
Also it can promote close international economic [cooperation] between Thailand and Cambodia.
How much was invested in this new plant? Who are the joint-venture partners?
The investment cost for the sugar mill was about US$60 million. Koh Kong Sugar Industry Co Ltd was founded by three joint-venture partners – Khon Kaen Sugar Industry Public Limited, the Thai investor, holds 50 percent; Vewong Corporation, a Taiwanese investor, holds 30 percent; and Okhna Ly Yong Phat, the Cambodian investor, holds 20 percent of the common shares of the company.
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