ID :
118892
Tue, 04/27/2010 - 10:17
Auther :
Shortlink :
http://m.oananews.org//node/118892
The shortlink copeid
Laos, China join investment in steel factory construction
VIENTIANE, 26 APRIL (KPL) - Two companies of the Lao PDR and China have decided to enter into a joint venture investment of more than 1.4 billion kip (US$179.80 million) in building a Lao iron and steel factory in Hay village, Saythany district, Vientiane Capital.
A foundation stone-laying ceremony for the construction of the Lao iron and steel facility held at Hay village, last Saturday.
The Vice President of the Lao Iron and Steel Company Ltd, Mr. Vandy Koualivong, said that the Lao Iron and Steel Construction Project was a joint venture between Kungang Iron Company in Yunnan province of China and local partner - CK Import-Export Company Ltd., which will have an annual production capacity of 500,000 tonnes.
The construction work will be divided into two phases. Upon the first phase expected early next year, the factory will have an annual output of 200,000 tonnes, worth more than US$118 million.
The second phase will start upon the completion of the first phase, said Mr. Vandy. The Chinese company holds 70 per cent share in the venture while the CK Company holds only 30 per cent.
The factory will use domestic raw materials from local excavating companies of iron ore to feed the production process. It is believed that Laos has enough raw materials to meet manufacturing demand.
The iron melting plant will be built in Vientiane province, which will serve as a raw material supplier to the Lao Iron and Steel Factory.
The construction of the Lao Iron and Steel Factory is expected to play a significant role in contributing to socio-economic development and providing no less than 1,000 positions to local people.
President of the Kunming Iron and Steel Holding Corporation, Mr. Wang Chang Yong, said that the Lao iron and steel factory would be completed in time with strong support from authorities in Yunnan province and the Lao and Chinese governments.
“The factory will export its output 200,000 tonnes per year to Cambodia and Thailand and the rest will be for the domestic market,” said Mr. Vandy. “It is expected that the new factory will supply enough steel for the entire domestic market where the domestic demand is around 300,000 tonnes per year.”
The steel demand in Laos tends to increase year on year, he concluded.
A foundation stone-laying ceremony for the construction of the Lao iron and steel facility held at Hay village, last Saturday.
The Vice President of the Lao Iron and Steel Company Ltd, Mr. Vandy Koualivong, said that the Lao Iron and Steel Construction Project was a joint venture between Kungang Iron Company in Yunnan province of China and local partner - CK Import-Export Company Ltd., which will have an annual production capacity of 500,000 tonnes.
The construction work will be divided into two phases. Upon the first phase expected early next year, the factory will have an annual output of 200,000 tonnes, worth more than US$118 million.
The second phase will start upon the completion of the first phase, said Mr. Vandy. The Chinese company holds 70 per cent share in the venture while the CK Company holds only 30 per cent.
The factory will use domestic raw materials from local excavating companies of iron ore to feed the production process. It is believed that Laos has enough raw materials to meet manufacturing demand.
The iron melting plant will be built in Vientiane province, which will serve as a raw material supplier to the Lao Iron and Steel Factory.
The construction of the Lao Iron and Steel Factory is expected to play a significant role in contributing to socio-economic development and providing no less than 1,000 positions to local people.
President of the Kunming Iron and Steel Holding Corporation, Mr. Wang Chang Yong, said that the Lao iron and steel factory would be completed in time with strong support from authorities in Yunnan province and the Lao and Chinese governments.
“The factory will export its output 200,000 tonnes per year to Cambodia and Thailand and the rest will be for the domestic market,” said Mr. Vandy. “It is expected that the new factory will supply enough steel for the entire domestic market where the domestic demand is around 300,000 tonnes per year.”
The steel demand in Laos tends to increase year on year, he concluded.
