Thai investor to build paper factory in Vientiane province
Thai investor to build paper factory in Vientiane province
Phinsawan Lao-Thai Agro Industry and Power Co., Ltd. will invest around US$3 (more than 24 billion kip) million to build a paper production factory in Meun district, Vientiane province, with local people to supply raw materials to the factory.
An agreement on a concession for 6.9 ha of land to build the facility in the district's Nampheun village was reached last week between the province's Department of Natural Resources and Environ ment and the company.
The department's Acting Director Mr Bounhieng Xayaseng and the company's Managing Director Mr Thanachai Thongsarnsern signed the agreement.
According to the company's Deputy Managing Director Mr Siboun Sidara, the business would be in the form of a 2+3 agreement, where the investor would provide seeds and technical expertise to local residents for planting ‘Chinese bamboo grass' or Viengzhu xao, while local people would assist the business by supplying their land, labour, and agricultural equipment.
Mr Siboun said a number of people in the district with a combined area of around 300 hectares had notified the company of their intention to grow the grass.
He said the company would take about 12 months to build the factory and enough grass would be planted to supply the necessary raw material.
The factory would produce 100 tonnes of paper pulp per day to be turned into cardboard, newsprint and coated paper products for domestic circulation and export.
To produce one tonne of paper pulp, 3.5 tonnes of bamboo grass are required. 360 tonnes of bamboo grass can be harvested from one hectare per year.
