Thai cement company set to build plant in Laos

Thai cement company set to build plant in Laos

Siam Cement Group (SCG) of Thailand is carrying out a survey of available raw materials and possible locations with a view to setting up one of the largest cement factories in Laos.

President of the Lao Cement Producers' Association, Mr Vanthong Sitthikoun, said on Monday the Lao government had authorised SCG to conduct a survey in Boualapha district, Khammuan province, where the company proposes to build the factory.

“There are now two surveys under way in Khammuan province for the construction of cement factories, by Thai and Chinese investors. When they finish, they will submit their findings to the government before building the factories,” Mr Vanthong said.

If SCG goes ahead with construction of the factory, it would have the capacity to produce 2,500 to 5,000 tonnes of cement per day, for supply to the Lao market.

“Khammuan province has an abundance of limestone and is in a very good location. Because it's in the middle of Laos, it means that transportation is easier and cheaper, which is attractive to investors,” Mr Vanthong added.

The concession period for factories is typically 30 years.

Speaking at a press conference in Thailand during the 4th Asean Sustainable Development Symposium last week, President and Chief Executive Officer of SCG, Mr Kan Trakulhoon, said SCG is enlarging its operations not only in Khammuan province, but also in Indonesia and Myanmar.

“In Laos and other countries, we plan to build cement factories in accordance with the standards we uphold in Thailand. We will also conduct business in line with the sustainable development approach, with a focus on a balance among economic, social, and environmental commitments under good corporate governance principles,” Mr Kan said.

The main reason for building a cement factory in Laos is the rapidly growing demand for cement in the country, especially for dam construction, he added.

SCG received an award after being named the world's top sustainable development model in the construction materials industry for the fourth year running.

Mr Kan asked that all business operators become more aware of sustainable development and apply the concept to their businesses in view of the fact that natural resources are limited.

“The Asian Economic Community will come into being next year, so we should prepare and be ready. Part of this preparedness is to adopt the sustainable development approach right now,” he said.

SCG employs the most advanced environmentally-friendly technology to reduce resource consumption and minimise its environmental impact.

In addition, SCG strives to share the sustainable development approach with the public through various socially beneficial activities.

Laos currently has 10 operational cement factories, with a total production capacity of about 3.84 million tonnes per year, according to figures published in the Vientiane Times last month.

Two of the factories are located in Vientiane, three are in Vientiane province, and there is one in each of the provinces of Luang Prabang, Xieng Khuang, Khammuan, Savannakhet and Saravan.

vientiane times