The family-run meat processor Thai-German Meat Product (TGM) is going ahead with a 1-billion-baht investment in a new factory on a 12-rai plot at Wellgrow Industrial Estate in Chachoengsao, a project delayed for six months by political unrest last April.

Construction is due to begin late this month or next month, with operations to start by the middle of next year, said Watana Puapatanakajorn, TGM's vice-president.

Founded in 1993 as a joint venture between Thai and German firms, TGM is one of the leading meat product manufacturers in Thailand, specialising in a broad range of Western meat products such as sausage, ham, bacon, salami and dried ham. These are sold to predominantly upscale consumers, mainly under the brands Two Pigs, TGM, Eurola and Schaefer.

TGM has been recently awarded 15 prizes at international food competitions in Germany by Deutsche Landwirtschaffts Gesellschaft (DLG) - the German Agricultural Society - one of the best-regarded organisations in agriculture and food.

TGM's products have also passed advanced scientific tests and product evaluation under the international standards used by the DLG test centre, which certified the products for superior quality and outstanding taste.

TGM is the first company in Thailand and the second in Asia to have won a prestigious DLG award.

The new processing facility will add 60-70 tonnes to TGM's current daily production of 20 tonnes from its first meat processing plant, which is on 5 rai in Wellgrow Industrial Estate, said Mr Watana.

The new plant is expected to create about 500 new jobs, raising the headcount to about 800, excluding more than 700 marketing staff.

Increased production should also build up exports, which currently contribute only 10% of sales revenue, say executives. TGM exports mainly to Cambodia, Hong Kong and Singapore.

Exports, which are mainly through modern trade outlets and hotel chains, are expected to hit 15-18% of sales this year and 25-30% once the new plant becomes fully operational.

The company reported sales revenue last year of about 1 billion baht, up only 10% from 2008 against an average 20% annual organic growth in recent years.

Modern trade channels contribute about 55% of the company's sales, with the rest coming from channels such as hotels, restaurants and bakery shops.

TGM attributes its bearish growth mainly to political turmoil and shrinking consumption.

Boosted by global and domestic economic recovery, the company expects its sales to climb by 20-30% this year. Net profit represents about 8-10% of the company's sales.