Bakery expands, Tokyu eyes Si Racha

SET-listed President Bakery, a producer and distributor of bakery products under the Farmhouse brand, plans to spend about 5 billion baht on investment over three years.

Of the investment budget, 2 billion baht is allocated to build a new production facility at its Lat Krabang plant. The project is targeted for completion in 2028, said managing director Apisate Thammanomai.

“The expansion aims to increase production capacity and enhance efficiency,” he noted.

Another 2 billion baht is allocated for the construction of a new flour mill. The investment amount increased from previous estimates because more advanced machinery was included, Mr Apisate said.

Construction of the mill is expected to be completed by 2028, he said.

The remaining budget is meant to upgrade the company’s vehicle fleet, including the addition of more electric pickups, with a target of 100 new electric vehicles per year.

Although diesel prices have declined from a peak of around 50 baht per litre in early April to 37.5 baht per litre on June 25, Mr Apisate said overall logistics and packaging costs remain 10-20% higher than before the US-Israeli war with Iran.

He said he anticipates consumer spending will gradually recover in the second half of the year.

The “Thai Chuay Thai Plus” co-payment scheme has helped lift company sales, Mr Apisate said.

He said he hopes the government will promote the Thai tourism sector, which supports growth in the service sector, as well as taking further action to reduce oil prices.

SI RACHA DEVELOPMENT

Saha Pathana Inter-Holding Plc (SPI), Tokyu Corporation, a Japanese urban development company, and Saha Tokyu Corporation Co Ltd have signed a memorandum of understanding to jointly explore the feasibility of future development projects in Si Racha, Chon Buri.

Over a three-year feasibility period, the partners plan to conduct studies and formulate development strategies covering 10-20 years across 700 rai of land owned by the Saha Group in Si Racha.

Vorayos Thongtan, president of SPI, said Si Racha is a key economic centre within the Eastern Economic Corridor. The companies aim to create a new business structure and a quality living environment to support long-term economic growth and investment, he said.

Yoshinori Ogata, executive officer and executive general manager for international business at Tokyu, said the feasibility study will cover various development projects such as commercial, office, residential, international schools, and convention hall facilities.

Mr Ogata said the investment value has not been determined, as it depends on the outcome of the feasibility study.

“International schools and convention halls are the projects we hope to move forward with first. However, we need to assess demand before proceeding,” he said.

The development projects aim to serve expatriates from across the world, not only the Japanese community, Mr Ogata said.

There are roughly 7,000 registered Japanese expatriates in Si Racha, he noted.

Japanese investors remain confident in Thailand, including automotive companies, which continue to expand their investments here, Mr Ogata noted.

Source – Bangkok News