New cement plant will be country's biggest to reduce import
New cement plant will be country's biggest to reduce import
Lao Pathana Cement Industry Ltd (LPC) will spend US$240 million building what will become the biggest cement plant in Laos to meet domestic demand.
The company, which is a subsidiary of Souksomboun Group Ltd, has agreed to employ China National Technical Import and Export Corporation (CNTIC) to design and construct the plant, which will be located in Khammuan province.
A contract on the plant was signed in Vientiane on Friday between Souksomboon Group President Mr Chittakorn Souksomboon and CNTIC Vice President Mr Wu Duoyu.
The ceremony was attended by Deputy Minister of Planning and Investment Dr Bounthavy Sisouphanthong, along with relevant government officials and company representatives.
The plant will be capable of producing 5,000 tonnes of cement a day and 1.69 million tonnes every year making it the biggest cement plant in the country, according to the company.
Cement factories in Laos currently produce about 1.7 million tonnes a year but demand has soared to 3.5 million tonnes a year as the economy has powered ahead.
The boom in infrastructure development requires vast amounts of concrete.
Many large projects – especially hydropower plants and road constructions – are still importing cement products.
Cement demand is likely to continue growing in the future as the government implements infrastructure development plans like the Southern Road No 13 renovation and the high speed railway project.
Mr Chittakorn said he believed the plant would help reduce cement import from overseas.
The government approved the project in November last year and construction is expected to finish in 2016.
The project will boost cooperation between Lao and Chinese companies as well as the Lao and Chinese governments.
Established in September 1952, CNTIC is a large-scale state-owned enterprise mainly doing business in technology trade, project contracting and project management integrated service.
vientiane times
