Huay Chuan Group, once Thailand's leading rice exporter, has outlined a series of investment plans totalling 1 billion baht to rebuild its profile in the rice business after a long break.

The group has decided to enter a 500-million-baht joint investment with Toyota Tsusho, a trading affiliate of Japan's Toyota Motor Corp, to manufacture rice-based products such as rice crackers, flour, and other instant products for the domestic and export market.

Part of the investment fund is expected to be used to build a new rice warehouse, processing plant, and port in Bang Pa-in in Ayutthaya, said Chookiat Ophaswongse, chief of Huay Chuan Group.

The expansion aims to beef up the export activities of Asian Peninsula Corporation (APC), particularly in Malaysia, to recover Thai rice market share that has been lost to Vietnam recently.

"Up to 70% to 80% of our markets were lost to Vietnamese rice and we are strengthening our marketing and business ties to bring back the market," said Mr Chookiat, also chairman of APC.

He said Huay Chuan had played a subdued role for nearly six years as its exports plummeted to just 80,000 tonnes last year, less than 1% of the country's total rice exports of 8.57 million tonnes in 2009.

More aggressive market moves this year may help the company meet its export projection of 120,000 tonnes, which would raise Huay Chuan to being the 15th largest rice exporter out of 200 Thai rice companies, up from 20th last year.

He said that Toyota Tsusho, or Tomen Corp before it was acquired by Toyota Motor in 2005, had a 30-year relationship with Huay Chuan and approached it about a joint venture, not only for rice-based products but also facilities including modern rice-processing and storage units.

The two parties will meet next month to discuss various investment opportunities.

Mr Chookiat said Huay Chuan plans to sell its 17 rai of land in Rat Burana on the banks of the Chao Phraya River, which has a market value of 1 billion baht, to finance new rice projects.

"We did plan to develop the area but dropped our attempt to focus on rice, our core business," he added.
In 2008, Huay Chuan sold the Metropole Hotel Phuket to TCC Land, a property development company owned by the liquor and property tycoon Charoen Sirivadhanabhakdi, ending its two decades in the hotel business.

Source: Bangkok Post