Thai court allows 7 Mab Ta Phut projects to restart construction

25 February 2010 11:34  [Source: ICIS news]

SINGAPORE (ICIS news)--Thailand’s largest industrial conglomerate, Siam Cement Group (SCG), has been given permission by a court to resume construction at six of its suspended projects at Mab Ta Phut in Rayong province, a company source said on Thursday.

“The Central Administrative Court has given us permission to start again in terms of construction while we do the [health impact assessment],” the source said.

The six SCG projects allowed to resume work are those run by subsidiaries Map Tha Phut Tank Terminal and Thai Polyethylene; those run by Siam Polyethylene and Siam Synthetic Latex, two joint ventures between SCG and Dow Chemicals; and a project run by Thai MMA.

In addition, a bisphenol A project belonging to PTT Group was also given the green light to resume construction work by the court on Wednesday, the source said.

The seven projects are among 64 industrial projects suspended under a court ruling on environmental grounds.

While construction work could resume immediately and test operations were allowed, it was still unclear when the projects would be able to start commercial production, the source said.

The Administrative Court on Wednesday said that the seven projects would still require the completion of necessary health impact assessments and regulatory approvals before commercial production could start, according to the source.

In a decision in late September 2009, the Thai Central Administrative Court issued an injunction on all 76 projects, heeding the call of provincial residents who claimed that the projects were environmentally harmful.

The suspension was lifted on 11 of the projects in December last year.

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By: Nurluqman Suratman

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