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"Kathing" faces coal shortage for cement production
The Lao Cement Company, owner of the most popular cement brand Kathing (Bull), is now facing coal shortage for its cement production while market demand is increasing, according to Director of the Lao Cement Factory No.2 Mr. Vanthong Sitthikoun.
Presently, our market needs at least two million tonnes of cement. This excludes the demand for building hydropower plants as 20 of them are under construction and for the development of high speed railway from China to Laos, Mr. Vanthong said.
He also said that there were six cement factories in the country with a combined annual production capacity of 1.5 million tonnes and due to the small production output cement import from neighbouring countries was unavoidable.
Realising the increasing market demand in the country, cement producers pay attention to increasing production capacity in cement industry, said Mr. Vanthong.
Another cement factory is under construction in the southern province of Saravane with an expected production capacity of 500,000 tonnes per year. The factory is expected to start production in the middle of this year.
The Lao Cement Company is going to build its third factory in Vangvieng where its first and second factories are in operation, according to Mr. Vanthong. The new factory with an annual production capacity of 0.7-1 million tonnes is expected to be completed in 2013.
While market demand is significantly increasing, coal supply in the country doesn't meet demand of cement industry. As a result additional coal is imported from foreign countries. On behalf of the President of the Lao Cement Producers Association, I would like to propose to the government to grant concession to investors to prospect and mine coal for the use of cement production, said Mr. Vanthong.
KPL Lao News Agency
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