6. Future Projects

In 2009, 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. In 2009, the
company undertook machinery testing. Commercial sugar production will
commence in 2010.

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. In 2009, the
company undertook machinery testing. Commercial sugar production will
commence in 2010.

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, which is a new enterprise under the Company’s subsidiary,
consists of renewable energy related businesses—sugar production,
ethanol production, bio fertlizer production and biomass power plant.
Regarding the sugar mill business, the cabinet meeting’s resolution on
October 16, 2007 permitted New Krung Thai Sugar Factory Co., Ltd. to
move its sugar mill from Tamaka District to Boploy District,
Kanchanaburi Province, and expand its daily production capacity. The
production capacity of 32,000 TCD will allow the company to obtain
molasses and filter cakes, which are raw materials for ethanol
production, to accommodate its ethanol production at a capacity of
200,000 liters per day, 90-MW power plant, and bio fertilizer plant. The
ethanol production facilities, power plant and fertilizer plant are
located in the same area as the relocated sugar mill.

The company divided its investment into 2 phases. The first phase, in
which the construction has already begun, involves the sugar mill with a
production capacity of 14,000 TCD, 45-MW power plant, and the ethanol
production facilities at a capacity of 200,000 liters per day. It is
estimated that commercial operation will commence in early 2010. The
company plans to invest in phase 2 of the project in 2010. The
completion and operations at the full capacity are scheduled for early
2011.. The estimated capital investment for the project in Bo Ploy
District, Kanchanaburi Province is approximately THB 7,250 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 and the regulatory change required
by the 2007 Constitution affecting the power plant license, 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.