Oudomxay cement maker eyes regional distribution
Oudomxay cement maker eyes regional distribution
Oudomxay Cement Company in Oudomxay province is expected to begin production at the end of this year and anticipates it will supply the demand of cement products to various mega construction projects in northern Laos.
Chairman of Oudomxay Cement Company Limited Mr Vithoune Xiaochaleun told Vientiane Times yesterday that the construction of buildings to house a production machine is now some 40-50 percent progressed.
“It means that the preparation of the production machine is now 90 percent complete because it is already assembled in China. Once the building is completed, we will bring the machine to install it at the factory and commence production the same year,” he said.
The company is a 100 percent private-owned company owned by local investors. They are investing a total of US$80 million after the company received approval from the government relating to the project feasibility and raw material supply studies, which were completed in 2012.
“We are now targeting the completion of the project at the end of this year. Once it is completed, the production process will commence as quickly as possible to ensure our products will meet the demand of various mega-construction projects in northern Laos, especially the Laos-China Railway Project,” he said.
Mr Vithoune also said that the cement products from his factory will focus solely on domestic consumption in several northern provinces including Oudomxay, Luang Prabang, Bokeo, Luang Namtha and Phongsaly.
“We will also look at supplying cement products for the construction of various hydropower plants in northern Laos,” he said, adding that he is confident that the capacity of 700,000 tonnes per year and another 350,000 tonnes per year from two factories in Nambak district of Luang Prabang province, which are also owned by the company, will be sufficient for mega construction projects in the area.
Mr Vithoune said that the two factories in Nambak district of Luang Prabang province produce cement on a daily basis to facilitate the construction of various hydropower projects in the northern provinces of Laos.
Laos is currently enjoying rapid economic development and consequently demand for cement is on the rise, especially in regards to the construction of many mega projects as well as renovating dozens of existing hydropower plants in the country.
The Lao Cement Producer's Association reported that currently there are 10 cement factories in operation, with a total production capacity of about 3.84 million tonnes per year.
It also expects that the country may see a growth in cement production capacity at a rate of up to 10.64 million tonnes per year in the years to come as the government has granted approvals for many investors to conduct cement production studies in Laos over the past years.
Many cement factories are solely owned and invested by local investors and some plants are also owned by a joint venture groups between domestic and foreign investors.
