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Companies sign off on electrical equipment production project
The Korean Daekwang Engineering Company has signed a contract with the Electricity Construction and Installation State Enterprise for the production of switchgear, transformers and cables.
Company President Mr Seun Jae Jung, enterprise Acting Director General Mr Amphone Phommachack, Ministry of Energy and Mines Office Head Dr Bountheung Phengthavongsa and other officials attended the signing in Vientiane yesterday.
The agreement entails the building of a factory and equipment installation to produce switchgear, transformers and cable. The factory will be build at Km 19, Thaduea road, Ban Dongphosy, Hadsaifong district, Vientiane.
The construction of the factory is expected to start early next year and will take six months to complete and production will be started soon after.
According to a press release, the value of investment in the project is US$50 million, provided by the company and including providing training for Lao staff. The factory is expected to train about 100 employees to work in the field.
The state enterprise is providing land, staff and facilitation. The project concession is for 20 years but the project can be extended. The government will receive a 20 percent share of project profits.
Products will be supplied to the domestic market as well as exported to South Korea and Japan, where the Company already has a market. It is expected the products will be exported to neighbouring countries in the future.
Domestic demand for power is increasing as Laos is trying to expand the electrical network to more remote areas to achieve the government's goal to end poverty by 2020.
Mr Amphone said “This project is also one of our attempts to contribute to the country's development through the government's four breakthrough approaches.”
South Korean investment, currently the fifth largest foreign investor in the country, has been increasing recently and there are more and more South Korean projects and companies investing in Laos.
vientiane times
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