Fallout for Thai industry from Map Ta Phut administrative court ruling
By Jon Fernquest
The
biggest Thai business story in the news today is the decision by
Thailand's administrative court to get serious about community
rights
near one of Thailand's largest and most important industrial
complexes known
as Map Ta Phut in Rayong. Here is the article:
Map Ta Phut ruling hits SET
PTT may look to develop in Cambodia1/10/2009
Nareerat Wiriyapong
...Among the 76 projects worth 400 billion baht ordered to halt construction by the Administrative Court on Tuesday, 25 are being developed by subsidiaries and affiliates of PTT, said PTT chief financial officer Tevin Vongvanich.
These ongoing projects include a sixth gas separation plant, due to be operational by the end of this year, plants, and an petrochemicalupgraded refinery to meet Euro 4 emission standards.
The court ordered the suspension of operating permits for new investments in Map Ta Phut Industrial Estate in Rayong, following an outcry from environmental activists and residents who claim the permits violated Section 67 of the 2007 Constitution.
ruling - a decision
by a court
subsidiaries - a smaller company owned or controlled by a larger company
affiliates - companies connected with in some way with a larger company
ongoing projects - projects that are happening now, not completed yet
gas separation plant - factories that produce large quantities of oxygen for industrial use using the "gas separation" process (Read on origin of gas separation plants)
due to be operational by Y - the plan is that it is working before date Y
petrochemicals - chemicals made from oil and natural gas
refinery - a factory that makes some chemical like oil pure
upgraded refinery - an improved refinery (so it is using the latest technologies)
an oil refinery - "a very large industrial plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosine, and liquefied petroleum gas, oil refineries are typically large sprawling industrial complexes with extensive piping running throughout, carrying streams of fluids between large chemical processing units" (See Wikipedia on oil refinery)
emission - release into the air and atmosphere of a gas or radiation
Euro 4 emission standards - European Union limits on emmisions (See Wikipedia on European emission standards and emission standards) มาตราฐานควบคุมการปล่อยของเสียจากเครื่องยนต์ตามมาตราฐานของกลุ่มประเทศในยุโรป
subsidiaries - a smaller company owned or controlled by a larger company
affiliates - companies connected with in some way with a larger company
ongoing projects - projects that are happening now, not completed yet
gas separation plant - factories that produce large quantities of oxygen for industrial use using the "gas separation" process (Read on origin of gas separation plants)
due to be operational by Y - the plan is that it is working before date Y
petrochemicals - chemicals made from oil and natural gas
refinery - a factory that makes some chemical like oil pure
upgraded refinery - an improved refinery (so it is using the latest technologies)
an oil refinery - "a very large industrial plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosine, and liquefied petroleum gas, oil refineries are typically large sprawling industrial complexes with extensive piping running throughout, carrying streams of fluids between large chemical processing units" (See Wikipedia on oil refinery)
emission - release into the air and atmosphere of a gas or radiation
Euro 4 emission standards - European Union limits on emmisions (See Wikipedia on European emission standards and emission standards) มาตราฐานควบคุมการปล่อยของเสียจากเครื่องยนต์ตามมาตราฐานของกลุ่มประเทศในยุโรป
Euro
4 emission standard - a set of vehicle emission standards
applying to new road vehicles sold in the EU from 2005 or later (See Wikipedia)
operating permit - official
permission from the government to do a restricted activity
suspension of operating permits - stopping operating permits for a period of time (temporary)
Map Ta Phut Industrial Estate - one of Thailand's largest industrial estates located in Rayong (See interactive map)
industrial estate, industrial park - a special area especially for factories with special facilities (roads, transportation, water, electricity, waste disposal) (See Wikipedia)
outcry - public reaction of strong anger and disapproval
2007 constitution - Thailand's constitution after the 1997 coup (See Wikipedia and read the constitution)
Section 67 of the 2007 Constitution - on community rights (Read section)
suspension of operating permits - stopping operating permits for a period of time (temporary)
Map Ta Phut Industrial Estate - one of Thailand's largest industrial estates located in Rayong (See interactive map)
industrial estate, industrial park - a special area especially for factories with special facilities (roads, transportation, water, electricity, waste disposal) (See Wikipedia)
outcry - public reaction of strong anger and disapproval
2007 constitution - Thailand's constitution after the 1997 coup (See Wikipedia and read the constitution)
Section 67 of the 2007 Constitution - on community rights (Read section)
"The (temporary) suspension of these projects will affect our trading and contract partners, financial institutions, and related industries across the supply chain. Moreover, it will put at risk over 100,000 jobs, including hiring in [Map Ta Phut]," Mr Tevin said.
"We are planning to hold talks with concerned government agencies to seek ways to soften the impact from the court's ruling, or we may lodge an appeal."
trading partners - other
companies that the company buys from and sells to
contract partners - other companies
supply chain - all the processes involved in making and selling a product (procuring raw materials, parts, manufacturing, transporting, warehousing)
put at risk jobs - create a dangerous situation in which jobs might be lost
soften the impact - reduce negative effects
an appeal - a formal request to a court to change a decision made in a lower court
lodge an appeal - make an appeal request
contract partners - other companies
supply chain - all the processes involved in making and selling a product (procuring raw materials, parts, manufacturing, transporting, warehousing)
put at risk jobs - create a dangerous situation in which jobs might be lost
soften the impact - reduce negative effects
an appeal - a formal request to a court to change a decision made in a lower court
lodge an appeal - make an appeal request
Siam Cement said the court order would force its wholly owned subsidiary, SCG Chemicals, to halt nearly completed construction of its upstream naphtha cracker, as well as projects of its downstream subsidiaries and joint-venture units, expected to be completed between late 2009 to mid-2011.
"In this regard, SCC will be working closely with all relevant government authorities to jointly conclude a solution for all concerned parties, while minimising any effect on SCG Chemicals' investment projects," president and chief executive Kan Trakulhoon said in a statement to the Stock Exchange of Thailand yesterday.
Also affected is SET-listed Glow Energy, whose 660-megawatt power plant is likely to be postponed...
Surong Bualakula, senior executive vice-president for the international business unit of PTT, said Thailand's competitiveness had been crimped by the Map Ta Phut case.
The development could prompt PTT to look at neighbouring countries such as Cambodia, which has larger natural gas and oil reserves, as well as a pipeline network. The Cambodian government is considering a plan to build an energy complex in Sihanoukville, he said.
"Map Ta Phut is the centre of Thailand's industrial development region with a competitive advantage in the gas-based petrochemical industry," Mr Surong said. "What downstream manufacturers or automakers will invest in Thailand now because they cannot be sure if they will have enough raw materials in the future?"...
wholly owned subsidiary
- a smaller company owned completely by the larger company
upstream - at an early stage in the process of producing a product for sale (early in the supply chain)
downstream - at an late stage in the process of producing a product for sale (late in the supply chain)
naptha - flammable liquid mixtures of hydrocarbons, a distillation product from petroleum or coal tar used in the petrochemical industry for producing olefins in steam crackers (See Wikipedia)
cracking - breaking large hydrocarbons into smaller pieces (See explanation)
cracker - a factory that does cracking (See Wikipedia)
upstream naphtha cracker
downstream subsidiaries - companies owned by a larger company that do work on a product at a later stage in the process
conclude a solution - find a final solution
parties - people, companies, organisations
all concerned parties - all people, companies, organisations affected by so concerned with decision
jointly conclude a solution for all concerned parties
watt - a measure of power output or energy conversion (See Wikipedia)
megawatt (MW) - one million watts, used to measure power producing capacity of electrical generators operated by utility companies: "A large residential or retail building may consume several megawatts in electric power and heating energy....Modern high-powered diesel-electric railroad locomotives typically have a peak power output of 3 to 5 MW, whereas U.S. nuclear power plants have net summer capacities between about 500 and 1300 MW" (See Wikipedia)
660-megawatt power plant -
postponed - delayed, completion date moved into the future
prompt X to do Y - cause X to do Y
reserves - a supply for future use
competitive advantage - being better able to compete (because you have something that other businesses do not have)
upstream - at an early stage in the process of producing a product for sale (early in the supply chain)
downstream - at an late stage in the process of producing a product for sale (late in the supply chain)
naptha - flammable liquid mixtures of hydrocarbons, a distillation product from petroleum or coal tar used in the petrochemical industry for producing olefins in steam crackers (See Wikipedia)
cracking - breaking large hydrocarbons into smaller pieces (See explanation)
cracker - a factory that does cracking (See Wikipedia)
upstream naphtha cracker
downstream subsidiaries - companies owned by a larger company that do work on a product at a later stage in the process
conclude a solution - find a final solution
parties - people, companies, organisations
all concerned parties - all people, companies, organisations affected by so concerned with decision
jointly conclude a solution for all concerned parties
watt - a measure of power output or energy conversion (See Wikipedia)
megawatt (MW) - one million watts, used to measure power producing capacity of electrical generators operated by utility companies: "A large residential or retail building may consume several megawatts in electric power and heating energy....Modern high-powered diesel-electric railroad locomotives typically have a peak power output of 3 to 5 MW, whereas U.S. nuclear power plants have net summer capacities between about 500 and 1300 MW" (See Wikipedia)
660-megawatt power plant -
postponed - delayed, completion date moved into the future
prompt X to do Y - cause X to do Y
reserves - a supply for future use
competitive advantage - being better able to compete (because you have something that other businesses do not have)
(Source: Map Ta Phut ruling hits SET, PTT may look to develop in Cambodia, 1/10/2009, Nareerat Wiriyapong, link)
