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Cement makers harden resolve to address shortages
Cement producers in Khammuan province have agreed to supply more cement to Vientiane to address the current shortage of cement in the capital.
Lao Cement Producers Group Secretary General Mr Inpone Phananoulack gave an interview with the Vientiane Times on Tuesday after holding a meeting with the company recently.
He added that if the company does not supply sufficient cement to the capital this month, based on its maximum capacity, the group will ask the Ministry of Industry and Commerce to import cement from neighbouring countries.
“Vientiane is suffering a cement shortage of about 400 tonnes per day, which is causing major delays to construction projects in the capital,” Mr Inpone said. “This issue needs to be addressed urgently otherwise it will impact on national development as a whole.”
A source who asked not be named said the producer in Khammuan province has a stock of about 100,000 tonnes but does not want to sell to dealers in Vientiane due to internal factors. For instance, some dealers were failing to pay their debts to the company.
However, the Khammuan company said it will supply enough cement to alleviate the shortage in Vientiane, otherwise the order to import cement could be made by the ministry by the end of this month.
Mr Inpone assured the media that the cement shortage would not affect the price charged by factories. But he was concerned that dealers may take this opportunity to increase the wholesale price.
Officials need to work in closer cooperation in order to manage the market price of cement to ensure that everyone benefits.
Earlier this year, the price of cement was adjusted due to rising oil prices on the world market. The current price of green brand cement sold by the factory is 710,000 kip per tonne and red brand cement sells for 780,000 kip per tonne.
In theory, cement factories allow wholesale dealers to sell cement for about 30,000 kip more per tonne, but some dealers added more to make extra profit during the current shortage.
Cement shortages are common in Vientiane at the beginning of the year as this is the peak construction period, but this year the problem has surfaced earlier.
The demand for cement in Vientiane is about 1,500 tonnes per day but the supply is just over 1,100 tonnes per day, leaving a 400 tonne shortfall.
The Ministry of Industry and Commerce has given the Lao Cement Producer Group the chance to solve the problem before it gives the nod to cement imports.
Laos has seven cement manufacturers with a total production capacity of about 1.55 million tonnes a year, which is only sufficient to meet 80 percent of total domestic demand.
Earlier this year, the government allowed the temporary importation of cement from neighbouring countries to address the shortage and facilitate development in the capital.
vientiane times
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