• Economics

Work Starts on Biggest Cashew Processing Plant

• By Chhum Chantha
• December 7, 2023 10:50 AM

PHNOM PENH – Construction of Cambodia’s biggest cashew nut processing plant started on Dec. 6 in Kampong Thom province.

Singaporean company CSNC is investing $14 million in the plant which will produce up to 14,600 tonnes a year.

Uon Silot, president of the Cambodian Cashew Association, said that CSNC Agriculture Co Ltd. has registered $2 million of investment plus $12 million dollars in working capital for the plant in Kampong Thom’s Kampong Svay district.

The factory will cover 11 hectares and be capable of producing up to 14,600 tonnes a year. 

Kampong Thom has been selected as the factory site because it is the province with the biggest area of cashew production, with nuts grown on more than 150,000 hectares.

These produced an average of 150,000 tonnes a year, which is 30 percent of production nationwide.

Kampong Thom also offers a unique location as it lies in the middle of the country and is surrounded by other provinces producing cashew nuts such as Preah Vihear, Siem Reap, Kratie and Stung Treng.

“The Singapore company has come to carry out studies since before COVID-19. They saw a good opportunity to open our Cambodian factory,” he said.

The factory will cover 11 hectares and be capable of producing up to 14,600 tonnes a year. Photo provided by Chea Vanchan

The investment could be key to attracting companies to invest in processing other crops, including potatoes, pepper and bird nest.

“The opening of this factory is the first step because in that area there are companies from six countries such as China, Japan, Malaysia, Indonesia, Vietnam and Thailand studying the potential,” he said.

“If we succeed with the Singapore company, I believe others will come and will focus on other products.”

There are about 40 cashew processing plants across the country, of which four are medium-sized.

Silot said that up to 30 large factories are required to stabilize the market and prices as well as to create employment for surrounding communities.

In the first ten months of 2023, Cambodia produced about 651,000 tonnes of raw cashews, of which 615,000 tonnes, worth $831 million, were exported to Vietnam.

 

Originally written in Khmer for ThmeyThmey, this article was translated by Torn Chanritheara for Cambodianess.