US agricultural processor Cargill has announced investment of US$70 million (2.31 billion baht) in Thailand to expand production in Nakhon Ratchasima, Samut Songkhram and Phetchaburi provinces.
The $70-million budget is expected to be disbursed by next year. Of the total spending, $65 million will go towards manufacturing chicken processing products in Nakhon Ratchasima.
Some $3 million is to upgrade an aqua-feed production plant in Phetchaburi, while $2 million is to establish Cargill's technology application centre for R&D in Samut Songkhram.
David MacLennan, chairman and chief executive of the Minnesota-based company, said this is a new milestone for Cargill in Thailand, as it is confident the country's food industry has potential to expand from consumer demand in both local and overseas markets.
"Poultry consumption is an important business for Cargill, making up nearly 80% of the company's operations in Thailand and exports to 28 countries around the world," he said.
Mr MacLennan said Cargill expects revenue in Thailand to increase by 3-5% this fiscal year, which started in June. Local arm Cargill Siam Ltd reported total revenue of $1 billion in the previous fiscal year.
"The global economy and consumption market can beef up revenue in Thailand to meet Cargill's expectations," he said.
Established locally in 1968, Cargill has operated for 50 years ago with a combined investment of $1.15 billion in various operations.
Cargill Siam has 14 facilities across the country with more than 17,000 employees.
Mr MacLennan said Cargill is running many business units -- agriculture, animal nutrition, bioindustry, food and beverage, pharmaceuticals and poultry.
The company has 200 customised animal nutrition solutions for swine, aquaculture and poultry to serve 400 dealers and farm owners.
Cargill is looking for mergers and acquisitions in Thailand, ranging from upstream to downstream business.
At the global level, Cargill has its business presence in 70 countries with 155,000 employees worldwide with 153 years of experience in agricultural services, crops, livestock, food, health and pharmaceutical and industrial and financial risk management.
Cargill's customers include food service companies, convenience store chains, food manufacturers, distributors and large retailers in Japan, Canada, the US, Southeast Asia and Europe.
In the previous fiscal year, ending May 2018, Cargill posted a 5% rise in revenue to $114.7 billion and net earnings for the period grew by 9% to $3.1 billion.
Cash flow in the last fiscal year from operations reached $5.22 billion, of which $3.68 billion was invested in strategic acquisitions, joint ventures, and new and existing facilities. Of the total revenue, 35% was generated in North America while Asia-Pacific made 29%.
Revenue from Europe, Middle East and Africa made up 25%, and the remaining 11% came from Latin America.