Khon Kaen officials blindsided by Red Bull subsidiary’s plant closure

[webfact]

Khon Kaen officials blindsided by Red Bull subsidiary’s plant closure

By THE NATION

 

 

KTD Property Development Co Ltd confirmed yesterday a decision to cancel plans to build and operate a factory manufacturing non-alcoholic beverages in Tambon Ban Dong of Khon Kaen’s Ubolrat district

The company, which is a subsidiary of Red Bull Group and owned by Saravoot Yoovidhya, Red Bull’s chief executive officer, added that the plant might be relocated, possibly to a neighbouring country.

 

The move surprised Khon Kaen land officials and Ubolrat district chief, who reportedly said it was regrettable due to the long-term economic benefits the plant, which is more than 50-per-cent complete, would have brought, but a police complaint regarding road construction would still go ahead.

 

The firm claimed in a statement that it had followed the rules, regulations and legal procedures set out by authorities, adding that a public hearing attended by about 400 villagers from all 15 villages in the plant’s vicinity ended with villagers voicing their approval.

 

The statement said the company believed the plant would have generated significant revenue from the requisite supply chain, boosting suppliers’ prosperity and upstream industries as well as providing jobs for local residents and contributing revenue to the Tambon Administrative Organisation. Investment in the plant was an estimated Bt3 billion.

 

In the past few months, groups have voiced opposition to the plant resulting in misunderstandings with villagers due to “misrepresentations”, the company claimed. 

 

The statement said the issue undermined the firm’s ability to operate efficiently in the locality, while it believed it would constantly be confronted with difficulties while its management would find it difficult to resolve issues.

 

The firm therefore decided to cancel its investment in the area and was considering alternative locations, possibly in a neighbouring country, for the plant, the company said. The plant was primarily intended to be a production base for markets in Cambodia, Laos, Myanmar and Vietnam.

 

The statement added that the company planned to continue community support activities that it had already initiated for “a period of time”. 

 

The company had filed a request for the revocation of its lease for the 31-rai (4.96-hectares) Huay Mek land plot adjacent to the company’s 500-rai factory plot on September 15 and cancelled its water management programme, the firm said. The statement added the firm would restore areas where it had moved earth to its original state.

 

Acting Khon Kaen land office head Sirichai Thaweechon said he had no idea about the firm’s plan as he had just inspected the Huay Mek forestland plot demarcation on Tuesday. 

 

“I still have an appointment next Monday to supervise the demarcation of the public road which the company had built and reportedly blocked a public path resulting in villagers’ complaints and Ubolrat district chief’s police complaint,” he said. 

 

District chief Natthapat Ploysupa gave no comment on the company’s cancellation of the plan as it was a business operations matter. 

 

However, he said he would still proceed a police complaint over the road construction as it was a criminal offence. “I can’t help but regret the plant construction was cancelled though because it would have brought long-term economic gains and development,” he said.

 

Source: http://www.nationmultimedia.com/detail/national/30328575

 

-- © Copyright The Nation 2017-10-06

 

[ukrules]

Greedy locals hit where it hurts - the wallet ?

[Somtamnication]

Wish more Red Bull plants would close until that little man comes back to face justice. But, I digress.....

[Thian]

I would like to say the "path" which they blocked with the new road.

[dinsdale]

Smoke and mirrors here? Maybe Boss is costing more money than they thought.

[Bluespunk]

3 hours ago, webfact said:

 

In the past few months, groups have voiced opposition to the plant resulting in misunderstandings with villagers due to “misrepresentations”, the company claimed. 

Yeah, sure...”misunderstandings”

[smutcakes]

I wonder if that land is zoned for industrial

[WhisperingJack]

Maybe the District Chief requested too big a brown envelope!!!

[maoro2013]

33 minutes ago, smutcakes said:

I wonder if that land is zoned for industrial

I thought something like encroachment was mentioned at one point. Maybe a bit too much official meddling.

Edited October 6, 2017 by maoro2013
Spelling error caused by app

[smutcakes]

I presume because they have pulled out there is no need for further investigation..............

 

Similar to the park saga where because they paid money back all was ok......... The friendly AG had no issue with that

Edited October 6, 2017 by smutcakes

[farmerjo]

I'm sure this will cost the government quite a few baht in court proceedings.

[Get Real]

52 minutes ago, WhisperingJack said:

Maybe the District Chief requested too big a brown envelope!!!

Yeah! The book store couldn´t find a supplier or manufacturer of that size.

[smutcakes]

They wont pull out they are just having a tantrum and wanting some sympathy.

 

 

[robblok]

45 minutes ago, smutcakes said:

I presume because they have pulled out there is no need for further investigation..............

 

Similar to the park saga where because they paid money back all was ok......... The friendly AG had no issue with that

I hate it when that happens corrupt and negligent officials should always be punished there is no other way to move this country forward. Only when its hard to be corrupt will things change.

 

I am sure there will be some infighting now among the villagers as I am sure some wanted the plant to operate there and provide jobs. 

[robblok]

9 minutes ago, smutcakes said:

They wont pull out they are just having a tantrum and wanting some sympathy.

 

 

I am not so sure.. but it could be a threat to the villagers.. like we will close if you don't stop the protesting.. and its of course their good right to pull out if they don't like it there. I know I would certainly consider it if I am not welcome in a certain area.. i would move to where I am welcome. 

[jaltsc]

"The plant was primarily intended to be a production base for markets in Cambodia, Laos, Myanmar and Vietnam."

 

Don't be surprised if more companies decide to set up in business friendlier countries, and Thailand becomes a "market" country, rather than a producer. Thailand made its bed, now it can lie in it. With the latest changes in immigration policies, perhaps long term expat residency will follow suit. 

Edited October 6, 2017 by jaltsc

[YetAnother]

52 minutes ago, jaltsc said:

With the latest changes in immigration policies, perhaps long term expat residency will follow suit.

more than a few thinking people believe this is inevitable here; the prevailing ultra-conservatism and ultra-nationalism sure dont counter the negative expectations

[Psimbo]

5 hours ago, Somtamnication said:

Wish more Red Bull plants would close until that little man comes back to face justice. But, I digress.....

Well done-2 replies in to drag him into a totally irrelevant connection. You win this week's prize. 

[greenchair]

1 hour ago, smutcakes said:

They wont pull out they are just having a tantrum and wanting some sympathy.

 

 

I bet there'll be some heavy floor grovelling in the next few days. 

Perhaps if they don't stop harassing boss, they might just take a few more factories to neighbouring countries. 

Smoke and mirrors. 

[YetAnother]

" the plant, which is more than 50-per-cent complete,"; this appears a bluff/ploy to get the lawsuit dropped; cant see them writing off such a large investment easily

[Happy Time Thai]

Shot yourself in the foot there.....nice one.

[robblok]

33 minutes ago, YetAnother said:

" the plant, which is more than 50-per-cent complete,"; this appears a bluff/ploy to get the lawsuit dropped; cant see them writing off such a large investment easily

Good point.. but who knows the long term problems might really not be worth it. But 50% complete is quite a lot to give up, but without actual figures we wont know much. 

[Bluespunk]

3 hours ago, maoro2013 said:

I thought something like encroachment was mentioned at one point. Maybe a bit too much official meddling.

If the officials were investigating encroachment, that isn’t meddling- it’s doing their jobs. 

[funandsuninbangkok]

Pretty bad when even the Thais can't do business in Thailand

[Lucky mike]

Blackmail ?

[ukrules]

6 hours ago, YetAnother said:

" the plant, which is more than 50-per-cent complete,"; this appears a bluff/ploy to get the lawsuit dropped; cant see them writing off such a large investment easily

This company has so much money it can do whatever it wants, wherever it wants worldwide.

 

They could sit on it for the next decade watching the whole are fall into ruin then come back and see how appreciative the locals are.

[Wake Up]

Wealthy win and poor lose everywhere except in the movies and fairy tell books. Yet some still think their opinion matters as they are being used by politicians who work for the wealthy.  

Lucky for me no wars no vote don’t give a damn about Trump or Hillary or May or ( fill in the blank) and they don’t give a damn about me. Cash is king of this world and always has been.

 

Guys on this forum complainjng about Red Bull and paying for sex like these things are new. Guys spouting off that if they were in charge things would be different as they have the easy solutions and are so much smarter than those is charge of Thailand or etc.....  LMAO.