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Paper maker launches project in Savannakhet
A Chinese-owned company, Sun Paper Holding Lao, plans to plant trees on 2,000 hectares in Savannakhet province this year to supply its paper production facility.
The company held a ceremony at its plantation in Xepon district on Monday, with Savannakhet provincial Governor Mr Vilayvanh Phomkhe and Vice President of Sun Paper Industry Joint Stock Company Mr Pai Mao Lin among those in attendance.
The Sun Paper Industry Joint Stock Company, which is located in China, is the parent company of Sun Paper Holding Lao.
Mr Lin said the Sun Paper Industry Joint Stock Company produces high quality paper for packing, general use and artistic work. The firm is listed on the Chinese stock market. It has 12,000 staff, assets valued at US$3.3 billion and generates revenues of US$4 billion per year.
The company has conducted several feasibility studies in Laos since 2007. In November 2008 the company signed a Memorandum of Understanding with the Lao government. On November 23, 2009, it signed a project development agreement for an industrial tree plantation and construction of a paper production factory. On September 15, 2010, the company signed a land concession for an area of 7,324 hectares.
“The launch of this tree plantation today is a milestone for paper production in Laos by Sun Paper and is an important step towards strengthening the investment of the company,” Mr Lin said at the ceremony.
Sun Paper is the biggest paper production enterprise in China, using modern technology and integrated tree plantations to produce high quality products.
He said the company's initial investment in Laos of about US$200 million focuses on the production of raw materials through the processing of 300,000 tonnes of pulp with the cooperation of local people.
Within 10 years the company expects to have invested a total of US$2 billion in the project and have the capacity to produce 1.5 million tonnes of pulp for use in manufacturing 1.5 million tonnes of paper.
The company has a target to produce 3 million tonnes of paper per year at the facility.
The company expects to pay US$110 million to the government in taxes and royalties each year and hopes to see gross production value at the plant reach US$2.2 billion in the next 10 years.
The project expects to create 3,000 jobs for administrative staff and employ more than 30,000 manual workers.
Sun Paper Holding Lao has invested in a plantation nursery covering 200 hectares, which so far contains 4 million saplings.
The firm has completed planting trees on 700 hectares and expects to increase that to 2,000 hectares by the year's end.
The company also will encourage local people to plant trees by supplying them with seedlings and teaching them cultivation techniques. The company will then purchase the trees once they are mature.
The project creates opportunities for local people to effectively use their own land to create extra income in line with the government's policy to eradicate poverty.
The company will plant numerous trees and add more value to its products, thus generating revenues for the government and improving the living conditions of local people step by step.
Mr Lin expressed belief that with strong support from all government sectors the company will be able to achieve its goals.
The tree plantation ceremony was attended by Vice Governor of Savannakhet province Dr Souphan Keomixay and representatives of the project consultant company Mr Vongsavan Vorachit and Mrs Thoonsavan Sichanthongthip.
vientiane times
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