Thai industrial chemical factories and installations have been shut down by a lone activist
Thai industrial chemical factories and installations have been shut down by a lone activist
In Thailand’s greatest David and Goliath case, a lawyer from a family of rice growers has brought chemical factories grinding to a halt, ending revenue flows of billions of dollars.
More than 30,000 people work in the 100-plus chemical plants at Map Ta Phut, 150 miles east of Bangkok. This sprawling industrial estate is a major global supplier of petrochemical products. Mile upon mile of refineries, plastics factories and steel plants provide materials for manufacturing across Asia.
The Thai chamber of commerce regards Map Ta Phut as crucial for Thailand’s future. But 42-year-old lawyer and activist Srisuwan Janya has accused the companies operating at the site of killing local residents and poisoning the landscape.
Srisuwan is not alone in his concerns. In 2003, Thailand’s National Cancer Institute found that rates of genetic cell damage were 65% higher in residents living near the industrial estate than in villages elsewhere. The public health ministry has said that local cancer and leukaemia rates are five times the national average.
In December, the evidence helped persuade the country’s higher administrative court to uphold a lawsuit brought by Srisuwan and 27 local citizens, ordering 65 industrial facilities to cease operations. The Thai central bank believes the stoppages could shave 0.5% from economic growth next year.
Incomplete rules
The plants are owned by Thai corporate giants PTT and Siam Cement, Germany’s Bayer, Japan’s Mitsui and India’s Aditya Birla. Activists have accused western investors of using Thailand as a “pollution haven” for activities that their home governments deem unsafe.
Srisuwan’s case hinged on Article 67 of the 2007 constitution, brought in by military leaders who had carried out a coup the previous year. This requires all industrial firms to carry out health and environmental impact assessments of new facilities and hold consultations where local citizens can have their say.
But Thailand has been embroiled in deep political turmoil since 2007. Amid three changes of prime minister, no government passed the enabling legislation for community consultations or set up the independent body meant to govern the impact assessments.
The companies say they have been penalised for disobeying a rule book that has not been written yet. PTT’s chief executive says his firm alone could forfeit 5% of its profits this year. While work has restarted at some of the shut-down plants, it is unclear how long the others will remain at a standstill.
According to Steve Davis, an equities analyst in Bangkok, the controversy comes in spite of Thai industries’ voluntary embrace of environmental standards.
“Everyone realises there will have to be more sensitivity to environmental and health issues,” he says. “But PTT and Siam Cement are way ahead of the curve. They anticipated the trend and cleaned up their act.”
Nonetheless, years of high-octane growth have left scars on Thailand’s landscape that have galvanised a strong environmental lobby. Srisuwan has pledged to take on another 181 industrial projects for similar infringements.
And as they prepare their defence, companies that set up their own impact assessment systems will find themselves on firmer ground.