Thai President Foods Plc (TF), producer of Mama instant noodles, has delayed its investment plans in Ghana and Bhutan and cancelled them in Nepal.
Chief executive Pipat Paniangvait said it decided to delay its plan to set up a factory costing 300 million baht in Ghana because the country's political and business situation was unstable.
We saw market potential in Ghana and the West African region after shipping our instant noodles there. Mama products have gained popularity in Ghana but the economic and political problems made us delay he plan," he said.
In Bhutan, Thai President could not find a suitable land plot for a noodle factory. The recent powerful earthquake in Nepal made the company cancel its plan to form a joint venture with Nepal's second-largest instant noodle manufacturer.
It will continue to provide technology to the Nepalese company. Despite the setbacks in three overseas markets, Thai President will continue to expand its business in neighbouring countries on a small scale this year.
It is increasing its registered capital in Cambodia to rent a 10-rai plot to set up its own noodle factory.
Our Mama instant noodle operation in Cambodia is profitable. We will spend 30-60 million baht to build the plant this year and start operations next year," Mr Pipat said.
The company plans to start construction of its second noodle plant in Myanmar in the middle of next year to respond to rising demand.