UBE allots B400m to capacity expansion

Firm to triple output of gluten-free flour

Cassava-based ethanol maker Ubon Bio Ethanol Plc (UBE) plans to rack up more revenue based on demand for distinctive and healthy flour products by allocating 400 million baht to triple production capacity of its gluten-free Tasuko flour to 300 tonnes per day.

Current daily capacity of 100 tonnes must increase to serve “exponential growth” of consumption of gluten-free flour, which is made from organic cassava, said Daechapon Lersuwanaroj, managing director of UBE.

The company plans to build a new production facility near its existing factory in Ubon Ratchathani within the first quarter of this year and start operations one year later.

“We are developing new products to tap into the trend in healthcare in the US, Europe and East Asia,” said Mr Daechapon.

In the Thai market, 7-10% of flour consumers are allergic to gluten. This becomes a business opportunity for the firm to produce products that serve the need of these consumers, he said, adding that the number of people allergic to gluten tends to grow yearly.

Gluten-free flour helps this group of consumers avoid symptoms caused by their allergies, which include fatigue, headaches, abdominal pain, nausea and constipation.

According to UBE, a portion of the 400-million-baht capital spending will finance its plan to add value to organic flour products, with the help of new technologies.

The firm plans to launch organic cassava-derived flour with distinctive features, including low sugar content and high fibre.

Flour with high fibre has the potential to be developed into a wide variety of food products such as assorted pasta, noodles, ramen and bakery pre-mixes.

The capital spending is a part of UBE’s initial public offering programme late last year when it raised 2.8 billion baht from the trade of 1.37 billion shares on the Stock Exchange of Thailand.

Mr Daechapon said the firm is also in talks with food ingredient makers to form a joint venture to develop new downstream cassava-made products under the Savy and Tasuko brands.