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Lao Cement Industry Company committed to Vientiane market
Lao Cement Industry Company Limited is committed to helping address the cement shortage in the capital by continuing its role as a major cement supplier to the Vientiane market.
Company Managing Director Li Ming said on Friday that the Khammuan province-based company currently supplies at least 1,000 tonnes of cement per day to the capital, equal to about half of all cement in Vientiane.
“The demand for cement in Vientiane is 2,000 tonnes per day and our company supplies between 1,200 and 1,300 tonnes per day,” he said.
But the main problem for his company is the import of expensive coal from a neighbouring country.
The coal supplier often makes short-term contracts to sell coal to the company, causing some problems in the company's cement production.
Mr. Ming said the company is in the process of signing a MOU with the government for a coal concession in southern Laos. If the company can source coal in Laos, its cement production would face fewer obstacles and prices could fall.
Company Deputy Manag-ing Director Kevin Lim said that if the company has its own coal, its cement would be more competitive for export.
Established in 2007, Lao Cement Industry Company has a working capacity of 3,000 tonnes per day. It mostly supplies cement to the central and southern parts of Laos.
Mr. Lim said cement consumption in Laos increases by 20 percent annually, which is higher than the country's GDP growth.
The company supplied 530,000 tonnes to the domestic market in 2010, and plans to increase this to 600,000 tonnes in 2011.
Vientiane has suffered a cement shortage for three weeks, affecting the construction industry.
The Ministry of Commerce and Industry warned that if local cement producers cannot supply the market, it will have to import cement as the shortage could delay the country's development.
Last week, the price of cement increased, which the Lao Cement Producer Group attributed to the rising costs of transport in Laos.
The price of green cement increased from 680,000 kip to 710,000 kip per tonne and retailers are allowed to sell it at 740,000-750,000 kip per tonne.
The price of red cement increased from 750,000 kip to 780,000 kip per tonne and retailers are allowed to sell it at 810,000-820,000 kip per tonne.
But some retailers have taken the opportunity of the shortage to sell cement at higher than the prices set by the group. Some are selling green cement for as much as 800,000 kip per tonne.
Large amounts of cements are bought in April each year when people build houses ahead of the wet season, when construction becomes difficult.
Laos has seven cement manufacturers with a total production capacity of about 1.55 million tonnes a year, but this figure is only enough to meet 80 percent of total domestic demand.
vientiane times
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