Thailand
Cambodia: New Thai instant noodle plant on the horizon
Bangkok-based Thai President Foods PCL, the maker of the instant noodle brand Mama, has purchased land in the kingdom with the intention of building a factory for the production of its popular noodles.
The firm, owned by the Saha Group and Nissin Holdings, is seeking more market opportunities overseas and plans to spend more than $6.19 million to set up instant noodle factories abroad in 2018, according to a report released yesterday in the Bangkok Post.
Petch Paniengvate, the head of the company’s department for overseas investment, said they have already bought a 6,400 square metre plot in Phnom Penh to build a Mama instant noodle factory.
The executive did not say how much money will be invested or when will construction begin.
Thai President Foods already operates one factory in Phnom Penh.
Pipat Paniengvate, the company’s CEO, said Thailand’s instant noodle market is becoming saturated, with annual consumption per person amounting to 49 packages, more than three times the global average, which is 13.3 packages per person.
“The market has grown at a slower pace over the past few years because of Thailand’s declining population growth,” Mr Pipat said. “The company is looking for more opportunities outside the country.”
Thai President Foods runs five factories in Thailand and four overseas, in Hungary, Cambodia, Myanmar and Bangladesh.
Thai President Foods expects consolidated sales to have increased by three percent to $329.8 million in 2017. Of total sales, about 80 percent are from the domestic market, while the rest come from overseas operations and exports.
About 10 percent of the company’s sales stem from premium products.
Trade between Cambodia and Thailand reached $5.6 billion in 2016, a rise of $100 million compared with 2015, according to figures provided by the Thai embassy in Cambodia.
Thailand’s exports to Cambodia last year were worth $4.7 billion, while Cambodia’s exports to Thailand were valued at $937 million, a 46 percent increase compared with 2015.
Source: http://www.khmertimeskh.com/50100168/new-thai-instant-noodle-plant-horizon/