Chalk maker plans for earnings boost
Chalk maker plans for earnings boost
The only chalk manufacturing plant in Thakhek district, Khammuan province, hopes to see a growth in sales over the next few years despite production having dropped a little.
The Chalk Production Factory plans to achieve earnings averaging 2 billion kip per year over the next three years according to their plan for 2013 to 2015.
The factory expects earnings to increase by 5-7 percent each year, with pofit tax to be about 3 to 5 percent while their contribution to the national budget through taxes and fees will be about 4 to 6 percent, according to a recent report.
The report noted that in the previous three years from 2010 to 2012, the factory had earned more than 5.39 billion kip in line with their last business plan.
The 5.39 billion kip included a contribution of over 220.15 million kip to the national budget while profits were about 152.20 million kip.
The factory paid its staff at the rate of about 1.8 million kip per person per month over the past three years. “However salaries are expected to go up by about 7 to 9 percent per year for the next three years according to the new plan,” the report noted.
The factory, which comes under the Education Equipment Enterprise, now employs over 30 people. It began the business of chalk production and supply in 1980.
Every year it mines hundreds of tonnes of local raw material - a form of limestone comprising calcium carbonate – and now is able to supply a wide range of different colours.
Education Equipment Enterprise Director, Mr Sonexay Phetphachanh, said that in 1990 the factory wa s only able to supply within Khammuan province but, after major changes to its production process and improvements to its management structure, the plant was able to start supplying other provinces in 1995.
The industry is facing a major sales challenge because many schools and offices are switching to the use of whiteb oards and marker pens instead of blackboards and chalk.
At one time the plant mined about 200 tonnes of raw material per year for chalk production. “But since 2008 we have been mining only about 150 to 160 tonnes per year,” Mr Sonexay said.
“I don't think this will decline further, however, because chalk consumption is still high and many developed and developing countries are still using lots of chalk, such as Japan.”
He added that the enterprise is currently trying to find a new material for making boards that both chalk and marker pens can be used on.
T he enterprise also hopes to find a business partner either locally or from overseas to join the business in the future.
Currently there are four chalk factories in Laos - three in Vientiane and one in Khammuan.
vientiane times
