Tapioca plant expansion project on schedule
Tapioca plant expansion project on schedule
The Lao Indochina Group Public Company Tapioca Factory's production capacity expansion project to accommodate the large supply of raw cassava in the coming fiscal year of 2012-2013 is progressing on schedule in Pakngum district, Vientiane.
“The expansion project is expected to begin production by December,” company Chairman Mr Sengmaly Sengvatthana said at a press conference on Thursday.
The plant expansion project started construction in May and “it is now about 30 percent complete,” Mr Sengmaly said. “It is an investment of about 62.4 billion kip (US$7.8 million) by the company.”
Once the expansion project is complete, it will employ an additional staff of about 160 local people. “By that time, total employment will be about 500 employees working for both plants,” he said.
The expansion includes more land for cassava storage and building a new factory, dormitory, canteen and other facilities to accommodate the extra staff. The expansion will be complete by the end of November
The company plans to add two additional production lines by the end of this year to boost the output of tapioca.
It will have four production lines to produce at least 600 tonnes of powder from 2,400 tonnes of cassava per day once the expansion project complete.
Currently the factory has two production lines and can produce 320 tonnes of tapioca from 1,200 tonnes of cassava each day. “However, we're now getting at least 1,500 tonnes of cassava a day,” he said. Cassava production has increased sharply and he expects it will continue to increase next year.
The factory has halted operations for over two months to service its machines, perform maintenance and train staff. It will resume new production for the fiscal year of 2012-2013 that will start on October 1 with the existing facilities.
He said this fiscal year cassava plantation areas will comprise about 13,500 hectares, a 76 percent increases from the last fiscal year. The 13,500 hectares are owned by 4,788 families in 271 villages in 14 districts.
Currently the raw cassava price is 500,000 kip per tonne and “the price will fluctuate depending on the global demand,” he said.
Some 90 percent of the factory's output is exported to China whilst the rest is sold on the domestic market.
Other factories producing tapioca powder for foreign and domestic consumption in Laos are located in Lau-ngam district of Saravan province, Meun district in Vientiane province and Pathoumphon district in Champassak province.
Tapioca powder is found in noodles, snack foods and seasonings. It is also used in the production of clothes, glue, paint, paper, medicine, false teeth and prosthetic limbs.
vientiane times
