Koh Kong cane plant packs it in

September 15, 2008 at 2:26 am 5 comments

The Phnom Penh Post – September 13, 2008

Written by Chun Sophal

Flooding at factory site blamed for joint venture’s failure

A US$100 million sugarcane factory that was to begin production in December in Koh Kong province has failed nearly two years after the joint Thai-Cambodian venture was agreed upon, one of its key backers said this week.

Rainy season flooding at the site for the proposed industrial complex is the main reason that the project was abandoned, said Mong Reththy, head of the agro-industry company Mong Reththy Group, which partnered with Thai billionaire Charoen Sirivadhakdi in 2006 to build the factory on 5,000 hectares of land.

“My plan for the factory is now impossible to complete,” Mong Reththy, who is also a Cambodian People’s Party senator, told reporters on Wednesday.

The project also would have required an additional 5,000 hectares of land from local farmers, Mong Reththy added.
The Mong Reththy Group now plans to turn the land into a palm oil plantation, he said, adding the palm oil project could go forward with future cooperation from Charoen.

The agreement between the two gave the Mong Reththy Group a 51-percent stake in the joint venture, with the balance going to Charoen, who also owns ThaiBev, the maker of Beer Chang.

Mong Reththy told reporters earlier that the factory planned to produce 60,000 tonnes of white sugar, 24,000 tonnes of molasses and 6 million litres of alcohol each year.


Most of the production was expected to reduce Cambodia’s reliance on imported sugar and related products.

The Kingdom spends $70 million each year importing white sugar from Thailand and Vietnam, according to customs figures.
The company has made no announcements about whether it will look for other potential locations.

Thon Sophea, a sugarcane farmer in Kandal province’s Korki Thom commune, said he hoped Cambodia would eventually have a large-scale sugar factory.

“I would increase my profits each year if we had a factory,” he said, adding that he currently makes about 5 million riels ($1,250) a year from one-half hectare of land.


Entry filed under: Economy and Trade. Tags: .

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5 Comments Add your own

  • 1. chhay ratha  |  September 11, 2009 at 4:12 am

    stuff in koh kong sugar industy

    • 2. Narin  |  December 12, 2012 at 9:09 am

      Does your company has subcontract with farmer? How cost you offer per ton of sugar cane tree?

  • 3. chhay ratha  |  September 11, 2009 at 4:30 am

    my name CHHAY RATHA i’m working in company Globe star travel (phnom penh). the few month i never working in the koh kong sugar industry.
    section: quality control
    ID :C00215

  • 4. Cheng Bunthoeun  |  April 5, 2010 at 9:48 am

    Cambodian Harvest Dried Fruit Co., Ltd is a manufacturer of Dried Fruit, Jam, and Pickles in Cambodia. We are looking for more imformation about your sugar factory. Please keep in touch.

  • 5. Narin  |  December 12, 2012 at 9:07 am

    Could any one tell me on how is the Cambodia market price of Sugar cane per ton? and how is the cost of cultivation per hectare?
    I would plant them on my 300 ha land too.


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