Laos hopes to increase cement production capacity
Laos hopes to increase cement production capacity
Laos may see a growth in cement production capacity at a rate of up to 10.64 million tonnes per year in the near future, an increase from the current capacity of 3.84 million tonnes annually.
The capacity may see a large expansion after many cement investors gained approvals from the government to conduct a feasibility and raw material supply study recently.
The government issued licences for investors to conduct the studies on the construction of five new cement factories this year, after it issued an approval for an investor group in 2012 to conduct a cement production investment study.
According to a report from the Lao Cement Producer Association on Thursday, the five new factories include one in Oudomxay province and four in Khammuan province.
The report said, “They will have production capacities of about 6.8 million tonnes per year once construction is complete.”
An official from the Oudomxay cement factory construction project said on Thursday that the factory was now under construction and would be complete by the end of 2015, after investors received approval from the government on the project feasibility and raw material supply studies in 2012.
“It will be a joint venture between local investors, with an investment of about 680 billion kip (US$85 million),” the official said. Adding that, “This factory will have a production capacity of 700,000 tonnes per year once the construction is complete.”
The association reported that another four new factories will be built in the districts of Khounkham, Nhommalath, Hinboun and Mahaxay in Khammuan province.
The construction projects will be funded by both local and foreign companies after receiving approval to conduct a raw material supply study from the government this year.
Once they are constructed, each of them will have production capacities of one million tonnes to 1.8 million tonnes annually, the report said.
The factories will help Laos meet the domestic market's increasing demand for cement. The increase in Laos' production capacity meant the country will reduce the amount of cement imported from neighbouring countries.
Currently, there are 10 cement factories under operation, with a total production capacity of about 3.84 million tonnes per year.
Two factories are in Xaythany district of Vientiane with the capacity of 600,000 tonnes per year.
One factory is in Nambak district of Luang Prabang province, with a production capacity of 320,000 tonnes per year; three plants are in Vangvieng district of Vientiane province, with a total production capacity of 1.22 million tonnes each year; and one plant is in Khoun district of Xieng Khuang province, with an annual capacity of 50,000 tonnes.
Additionally, one plant is in Thakhek district of Khammuan province, with the production capacity of 1 million tonnes annually; one factory is in Atsaphangthong district of Savannakhet province, with 150,000 tonnes annually; and one plant is in Saravan district of Saravan province, with 500,000 tonnes per year.
vientiane times
