SET-listed Kaset Thai International Sugar Corporation Plc (KTIS) is revising the first-phase development of the Nakornsawan Bio Complex (NBC) project worth 7.5 billion baht.
The NBC, located on 2,000 rai in Takhli district of Nakhon Sawan province, will emphasise high-tech biochemical industry, including biopharmaceutical development.
KTIS is in talks with Global Green Chemicals Plc (GGC) to cut its investment budget. The negotiation is expected to be concluded early next year.
The 40-billion-baht project is an equal investment of the two companies.
KTIS deputy chief executive Darat Vibhatakalasa said the project is likely to be delayed for one year. It was originally scheduled to open in the fourth quarter of this year.
Construction of the project is 75% complete.
"The NBC is facing transport problems," Mrs Darat said. "Some equipment cannot be acquired during the Covid-19 pandemic."
KTIS said factories in India, Brazil and Germany cannot operate normally, due to lockdown measures.
The first-phase development is designed for a sugar-cane crushing unit with a daily capacity of 24,000 tonnes; an ethanol production plant with a daily capacity of 600,000 litres per day; a biomass power plant at 85 megawatts; and steam at 475 tonnes per hour.
The government wants to make Thailand a biochemical industry hub in Asean by 2027. The NBC is part of the plan, along with biochemical development projects in Khon Kaen and Kamphaeng Phet, where raw materials like cassava and sugar cane are available.
KTIS has urged the government to increase investment privileges in the NBC project to better support the biochemical industry and is still waiting for a response.
"We called on the government to give the same incentives as those it grants to investment in the Eastern Economic Corridor," Mrs Darat said.
The biochemical industry is linked with the state plan for bioeconomy development to produce value-added farm products and increase household incomes.