SCG builds its first cement factory in Laos

SCG builds its first cement factory in Laos

Thailand's Siam Cement Group (SCG) is investing 10,000 million baht to build its first cement factory in Laos, to supply Laos and other countries in the Greater Mekong Sub-region.

A groundbreaking cere mony for the factory was held on Tuesday in Phova village, Mahaxay district.

The factory is slated for completion by 2017 and will have the capacity to produce 1.8 million tonnes of cement a year.

Speaking at the ceremony, SCG's Vice President of Operations for Cement-Building Materials, Mr Pichit Maipoom, said the purpose of the factory was to meet the growing demand for cement in Laos.

Cement is an essential aspect of infrastructure development for the improvement of living standards in Laos as well as for Asean Economic Community integration, he added.

“We chose to build a factory in Khammuan because the province has good raw materials and is conveniently located for connectivity with other Asean countries,” Mr Pichit said.

High-tech methods of construction will be used to build the factory and the process will be environmentally friendly, he added.

Modern and environmentally friendly machinery will also be used in the production process, which will incorporate electrostatic precipitators, bag filters and waste heat recovery to reduce the use of electricity and provide a high quality product.

SCG is also building cement factories in Indonesia, Cambodia and Myanmar in line with its business growth strategy.

Also speaking at the groundbreaking ceremony, Khammuan provincial Deputy Governor Mr Oday Soudaphone said the factory would help to lower the amount of cement imported from neighbouring countries.

Due to the location and rich natural resources of the province, industry, especially energy and mining, had the potential to become the leading contributor to Khammuan's economy, and already contributed 40 percent of GDP, he added.

Mr Pichit assured those present that the factory would create jobs for local people and provide income for community development.

SCG, a leading business conglomerate in the Asean region, has committed itself to conducting business in line with good corporate governance and sustainable development principles.

SCG was established in 1913 and began doing business in Laos in 2003 through four companies: SCG Trading Laos, CPAC Laos, SCG Logistics Management (Lao), and CPAC Monier (Lao). These companies produce and sell cement, and construction and decorative materials.

The groundbreaking ceremony was also attended by Deputy Minister of Energy and Mines, Dr Sinnava Souphanouvong; Deputy Minister of Natural Resources and Environment, Mr Chanson Senbouttalath; the Governor of Thailand's Nakhorn Panom province; senior officials from SCG, and provincial and local authorities.

vientiane times