Large cement plant in Khammuan 30 percent complete
Large cement plant in Khammuan 30 percent complete
A cement plant in Laos being established by the Siam Cement Group (SCG) from Thailand, which is located at Pova village, Mahaxay district, Khammuan province, is now 30 percent complete after construction began at the beginning of the year.
The plant is expected to start production in 2017, with an operating capacity of 1.8 million tonnes per year, after costing 10 billion baht to build.
The plant will be equipped with state-of-the-art technology that is also environmentally friendly, from the semi-open cut mining process that minimises impact on the aesthetics of the surrounding environment and the eco-system to a reforestation plan to plant trees in areas where mining has finished.
The initiative will set standards for sustainability in business and raise the bar for other plants in Laos.
The plant will help to cut cement imports, create jobs for local people and contribute to socio-economic development.
The project is part of SCG business expansion plans within Asean and will increase cooperation with the region.
The demand for building materials in the region has continued to grow, especially in Laos, Cambodia and Myanmar. This cement plant will mainly serve the demand in Laos and the northeastern region of Thailand.
SCG intends to build another plant in Laos to tap into its growing demand for cement, especially for dam construction.
The demand for cement rises every year and is much higher than the supply as more and more infrastructure projects get underway due to the nation's booming economy.
Currently, there are 10 cement factories in operation, with a total production capacity of about 3.84 million tonnes annually, according to the Lao Cement Producers' Associatio n.
Laos is expected to see a growth in cement production capacity of up to 10.64 million tonnes per year in the near future.
Cement producers in Laos are not operating at full capacity because they cannot deliver to all the provinces.
The government has issued licences for investors to conduct studies on the construction of five new cement factories this year after granting permission in 2012 for an investor group to conduct a cement production investment study.
The first cement factory to be built in Xayaboury province is expected to be operational in the coming months after construction started in 2013.
This plant is being financed by a Chinese company at a cost of US$9 million with a capacity of 900 tonnes a day.
