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LIG opens tapioca distribution branches in China
Lao-Indochina Group Public Company on Friday signed documents to establish new tapioca distribution branches in Nanning, Kuangxi province, and Hangzhou in Zhejiang province, China.
The signing ceremony took place at the Lao booth following the opening ceremony of the 8th China-ASEAN Expo in Nanning on October 21.
Attending the signing ceremony were Deputy Prime Minister Somsavat Lengsavad and Minister of Industry and Commerce Dr Nam Vinhaket.
Lao-Indochina Group Public Company Chairman Mr Sengmaly Sengvathana told press at the event his company will be producing 50,000 tonnes of tapioca by next year.
China needs about 12 million tonnes of tapioca each year so the company has promoted the cultivation of cassava in Laos to satisfy demand, and is supporting Lao farmers who want to grow cassava.
“Since our company began getting involved in the China-ASEAN Expo in 2008, we have seen huge success establishing ourselves in the China market,” Mr Sengmaly said.
The company's tapioca factory opened in July 2007 and officially began operations in June 2008 when it was granted an investment permit for US$5 million.
The factory exported its first 340 tonnes of tapioca to Kuangxi and Shianghai provinces in China the same year. Currently, the plant processes 1,000-1,200 tonnes of raw cassava per day, producing 250-320 tonnes of tapioca.
The factory can buy cassava from local farmers for a guaranteed rate because of the high demand from the Chinese market.
At present, cassava to supply the factory is grown on almost 8,000 hectares of land in 14 districts of Vientiane and Borikhamxay provinces, and in one district in Vientiane.
The factory has 12 wastewater treatment reservoirs and the Lao-Indochina Group has signed an agreement for a cooperation venture with the Thai Bio-Gas Energy Company to set up the first bio-gas factory in Laos with an initial investment of U$4 million. The factory will produce bio-gas using wastewater from the tapioca factory. It will produce 30,000 tonnes per day and sell the bio-gas back to the tapioca factory to reduce its consumption of electricity and charcoal.
The bio-gas factory is expected to begin production at the end of this year.
vientiane times
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