Red Bull-related KTD Property Development Co on Thursday cancelled its 3-billion-baht beverage plant in Khon Kaen province in the face of strong local opposition to its factory.
A company statement announced an end to construction and closure of the plant in tambon Ban Dong of Ubonrat district, which was planned to produce non-alcoholic beverages.
The Interior Ministry had approved the lease of 31 rai of the Huay Mek community forest to the company despite opposition from local residents.
The company said its land use application complied with all rules and regulations and it had received local support through public hearings with people of 15 villages in the vicinity of the forest land.
It said the project had been cancelled because some groups of people were opposing the land's use and it expected difficulties would follow if the work continued.
"As a result, we decided to cancel all our investment in this area, which would total around 3 billion baht. We are now considering alternative locations for our plant, possibly in a neighbouring country since this plant was primarily intended to be a major production base for CLMV markets," the company said, referring to Cambodia, Laos, Myanmar and Vietnam.
The company said the Huay Mek public land was adjacent to a 500 rai block purchased as the site of the plant. It had selected the land because it was a natural water catchment area.
It was earlier reported the company planned to build a water storage facility there. The company cancelled its request to use the public land in mid-September.
The matter came to light when activist Srisuwan Janya petitioned the National Anti-Corruption Commission to investigate Interior Minister Anupong Paojinda and five others for alleged abuse of power in relation to permission for the use of public land.
The application reportedly claimed the land was dry and non-productive.
Part of the Huay Mek community forest in Ubonrat district, Khon Kaen, seen in this picture on Sept 28 when a reforestation activity was held there. KTD Property Development Co announced on Thursday the cancellation of its beverage production factory on adjacent land. The company's plan to use the public land for water storage met strong local opposition.(Photo by Jakkrapan Nathanri)