6. Future Projects

In 2008, the company had 3 projects under implementation, a sugarcane
plantation and sugar mill project in Laos, a sugarcane plantation and
sugar mill project in Cambodia, and the renewable energy project in Bo
Ploy which includes relocation and expansion of the sugar mill in Tamaka
District to Bo Ploy District, ethanol plant, fertilizer plant and power
plant which are business downstream of the Company's sugar
manufacturing.

The followings are the project details:

Sugarcane Plantation and Sugar Mill in Laos

The project is under Savannakhet Sugar Corporation, a subsidiary that
Khon Kaen Sugar Industry Public Company Limited holds 97% of the shares.
A 30-year concession is granted for the company’s sugarcane plantation
on a 10,000-hectare (62,500-rai) land in Savannakhet. Sugarcane
plantation commenced in 2006, and has been expanded continuously. The
company aims to begin its sugar mill construction in 2008 and sugarcane
crushing in early 2009. The primary investment amounts to about THB
1,200 million. Savannakhet Sugar Corporation has an EBA (Everything but
Arms) quota on exporting sugar to the EU at a higher price.

Potential difficulties that might prevent the project from being
completed as planned include unexpected complications in plantation,
locals' undefined parcels of lands, poorly defined boundaries of the
land under the concession, and shortages of agricultural labor and
skills, etc.

Sugarcane Plantation and Sugar Mill in Cambodia

The project is under Koh Kong Plantation Co., Ltd. and Koh Kong Sugar
Industry Co., Ltd, which are subsidiaries that Khon Kaen Sugar Industry
Public Company Limited holds 50% of the shares. Both companies are
granted 90-year concessions for sugarcane plantation on a total area of
20,000 hectares (125,000 rai) in Koh Kong. Sugarcane plantation
commenced in 2006, and has been expanded continuously. Sugar mill
construction started implementation on 2008. Sugarcane crushing is
scheduled for early 2009. The primary investment amounts to about USD
100 million. An EBA (Everything but Arms) quota allows the sugar
produced to be exported to the EU at a higher price.

Potential difficulties that might prevent the project from being
completed as planned include unexpected complications in plantation,
political risk, climate problem, and shortage of agricultural labor and
skills, etc.

Renewable Energy Project in Bo Ploy 

This project is a venture of the Group's subsidiaries. The project
involves energy related businesses: sugar production, ethanol
production, organic fertilizer production and bio-mass power plant.
According to the cabinet meeting’s resolution on October 16, 2007, New
Krung Thai Sugar Factory Co., Ltd. was permitted to move its sugar mill
in Tamaka District to Bo Ploy District, Kanchanaburi Province. The mill
was permitted to expand its daily production capacity of 8,385 TCD to
20,400 TCD. This extended production capacity will allow the Company to
obtain molasses, bagasse and filter cakes, which are raw materials for
ethanol production, at a capacity of 200,000 liters per day, a 45 MW
power plant, and an organic fertilizer plant. The ethanol plant, power
plant and fertilizer plant will be in the same area as the relocated
sugar mill.

The Company has undertaken some purchasing of machinery, as well as
applied for the license and the project loan. Sugar production, ethanol
production, electrical generating and fertilizer production are expected
to begin in 2010. The estimated capital investment for the project in Bo
Ploy District, Kanchanaburi Province is approximately THB 5,000 – 5,500
million.

Potential factors that might prevent the project from being operated as
planned include delays in obtaining license and construction. Cane
promotion might not meet the target. Etc.

Besides the above ongoing projects, KSL also has future opportunities
under studies as follows:

(1) License to relocate the sugar mill of New Kwang Soon Lee Sugar
    Factory Co., Ltd. (subsidiary) in Chonburi Province to Sa Kaeo
    Province. The mill is permitted to expand its daily production
    capacity of 6,479 tons of sugarcane to 20,400 tons according to the
    cabinet meeting’s resolution on October 16, 2007.

(2) License for an ethanol plant, which would be a business down stream
    investment project related to the license to relocate the sugar mill
    of New Kwang Soon Lee Sugar Factory Co., Ltd. (subsidiary) in
    Chonburi Province to Sa Kaeo Province.

Future investment opportunities are in process of study in details.
Investment plan is under development and decision based on the economic
condition and corporate earning results. The Company will provide
further updated details on the project investment to get the approval
according to the regulations.