Ch Karnchang, the country’s second-largest construction company, is ready to take on Bt50 billion to Bt60 billion worth of post-flood work.
Chief executive officer Plew Trivisvavet said yesterday that after all flood waters have been mopped up, old infrastructure such as roads would need to be repaired while new infrastructure, such as roads, buildings and flood-protection systems, would need to be constructed.
The jobs will be divvied up among contractors in Thailand, including Ch Karnchang.
Sufficient human resources such as workers and engineers are not a problem for the company, even though it has to allocate some of its workforce to repair damaged infrastructure at Bang Pa-in Industrial Estate and build a dyke to prevent flooding in the future, Plew said.
Like other contractors, Ch Karnchang has suffered opportunity losses from new construction since last quarter because of the severe flooding.
Ayudhya Securities said in a research note that Ch Karnchang would be one of the contractors to benefit from the repair of infrastructure and construction of flood-protection systems from the government’s budget.
The company recorded an operating loss in the third quarter due to the flooding. It could not proceed with building the mass-transit Purple and Blue lines as planned during the quarter.
The brokerage predicts that Ch Karnchang will continue running at a loss this quarter, leading to a loss for the whole year.
Finansia Syrus said that despite the postponement of the government’s mega-projects to next year because of the flooding, Ch Karnchang could benefit from the construction of flood-protection systems and the repair of infrastructure.
However, the disruption of construction of a small-power-producer project in Bang Pa-in Industrial Estate will cause another loss for the company this quarter.
Source: The Nation