Wangkanai, Japan firm in sugar mill JV

Wangkanai Group, a producer of organic sugar, has signed a memorandum of understanding with Toyota Tsusho Corporation, one of Japan’s leading trading companies, on the joint investment of Bt7 billion in a sugar mill in Chai Nat province. 

Boonyarit Na Wangkanai, general manager of Wangkanai Group, said at the MoU signing ceremony in Chai Nat that his group and Toyota Tsusho had agreed to construct the Wangchainat mill in the province’s Nong Mamong district, with a planned production capacity of 18,000 tonnes of sugar cane per day. 

The move coincides with the government’s strategy to increase sugar production to supply the demands of markets within and outside the Asean Economic Community, as well as Thailand’s domestic market, which sees annual rises in sugar demand. 

Boonyarit said Wangkanai Group and Toyota Tsusho were well equipped to set up the sugar mill, as the project has been in preparation for more than five years. 

Wangchainat has been working on developing the irrigation system and setting up a credit-union cooperative to support farmers who are members. 

It has also donated 515 rai (77 hectares) of land to construct water reservoirs in Nong Mamong district, of which 100 rai will be allocated for a community knowledge centre for integrated farming and developing a park, as well as to set up a Buddhachinnawong Foundation to teach Buddhism. 

Under the collaboration, Wangkanai Group will be responsible for growing and refining sugar cane, while Toyota Tsusho Corp will be responsible for accounting, finance, sales and marketing. 

Haruyuki Hattori, general manager of the agricultural department at Toyota Tsusho, said: “Our Japanese company conducts a trading and import-export business, dealing with a variety of products, but with a current interest in food. We have an aim to either import sugar or to become a large sugar manufacturer based in Thailand, and seeking sources for raw material is therefore a crucial part of our job. 

“It also has to meet the demands of traceability in terms of production base, production method, farmers, raw material and fertiliser, among other things, all of which the Japanese [currently have] high interest in. Wangkanai Group, which is among Thailand’s top manufacturers of sugar, is capable of answering these demands. 

“Furthermore, for the past five to six years, Wangkanai Group has differentiated itself in sugar production by producing organic sugar without chemicals, which includes preparation in terms of soil, growing methods, the use of fertiliser and sugar production at the mill. All these issues are given high importance by the Japanese and various countries in Europe and [North] America. 

“The construction of Wangchainat sugar mill will therefore create jobs and income for farmers and raise the quality of life for Chai Nat residents, as well as help develop the country and strengthen the sugar industry,” Hattori said.