Company expands eucalyptus investment in Laos
Company expands eucalyptus investment in Laos
Stora Enso Lao Co. Ltd (SEL) has invested US$15 million to establish new eucalyptus plantations in Savannakhet and Saravan provinces after setting up the first one in 2007.
This year the company plans to grow about 2,000 hectares of eucalyptus trees - 1,200 hectares in Nong and Xepon districts of Savannakhet province and 800 hectares in Ta-oy district of Saravan province.
SEL also plans to continue working with local authorities and villages to expand its land concessions in other districts of both provinces, such as Toumlane and Samouy in Saravan and Vilabouly in Savannakhet.
The company is currently waiting for the government to issue a directive to grant the land after they suspended approval for mining projects as well as eucalyptus and rubber plantations.
Under the company's policy, for each hectare of land approved for planting they will pay 2.8 million kip into a village development fund to cover the leasing period, which is normally 50 years, the company's Land Department Manager, Mr Khambone Sysouk, said in a media interview during a field visit to Ta-oy district last week.
SEL will also pay 40,000 kip per hectare to the village group and 180,000 kip per hectare to the district as a development contribution, he said.
In addition SEL provides two scholarships to support students until they finish lower secondary school if that village grants about 200 hectares of land for the company's use.
After the company has cleared the land, local people can earn a daily income by preparing the land for planting, planting the trees and applying fertiliser, said Mr Khambone.
The money invested by SEL so far has improved local living standards through the provision of electricity and clean water, and better roads.
The company's management is confident SEL will receive government approval to continue their projects when concessions are again granted for mining, eucalyptus and rubber projects. SEL has provided many benefits for local people as well as giving a boost to village economies, contributing to national poverty reduction.
The company's agro-forestry system requires all land to be cleared of UXO, providing employees and farmers with safe working conditions.
SEL has applied to the government for a total land concession of 35,000 hectares which, if granted, will require the investment of about US$60 million, of which 50 percent would be spent on UXO clearance.
The company hopes to export about 700,000-800,000 tonnes of wood products per year to China.
Stora Enso is one of the largest forestry companies in the world with close to 40,000 employees in 40 countries. A Swedish king issued the first company licence to Stora Enso 700 years ago.
vientiane times
