(KPL) Laos-Yunnan Sole Co., Ltd. is preparing a capital investment of more than 50 billion kip (almost US$6.1 million) for the construction of four additional factories in Luang Prabang Province to supply explosive substances for the Laos-China railway construction project.
The company is the sole producer of explosive materials in Laos and is now preparing documents to request permission to build the factories from the relevant sector.
“We expect to complete the construction of the four new factories and begin producing explosive materials to meet the high demand of local and overseas markets by the end of October this year,” said Deputy Director of the Laos-Yunnan Sole Co., Ltd. Mr Aliyasith Phommilath.
This company was established in 1993 and is the result of a joint investment of 32 billion kip between the Department of National Defence of the Lao Ministry of National Defence and the Technical Industry Office of China’s Yunnan Province.
Laos-Yunnan Sole Co., Ltd. currently has three factories. One produces liquid explosive substances, one produces percussion caps, and the third produces lines of explosives.
“We import approximately 10,000 tonnes of raw material from China annually to supply to the factories. We currently sell about 6-7,000 tonnes per year locally for the construction of hydropower dams and mining activities,” Mr Aliyasith said, adding that all customers must be granted permission from the Ministry of National Defence before buying explosive substances to use. Foreign customers include Thailand and Cambodia.
Over the next five years, the amount of explosive substances that will be required for construction projects will increase, largely because of the construction of the Laos-China railway, added Mr Aliyasith.