The Lao government and SINO-KCL Sign a Memorandum of the Project of "Asia-Potash International Intelligent Circular Industrial Park"

(KPL) On March 24, the government of Laos and SINO-AGRI International Potash Co., Ltd. (SINO-KCL) held the memorandum signing ceremony of the "Asia-Potash International Intelligent Circular Industrial Park" project in Vientiane, which indicates that the government-enterprise cooperation project is about to get off the ground after more than one year's preparation.

Deputy Minister of Planning and Investment of Laos Khamchanh Vongsenboun and SINO-KCL's Executive Director and General Manager Tong Yongheng signed the memorandum on behalf of both parties, respectively.

The signing ceremony was also attended by representatives of the Chinese Embassy in the Lao PDR, relevant authorities, including the Prime Minister's Office, line ministries, Bank of the Lao PDR and Laos-China Cooperation Committee.

Representatives of Khammuan government, Xinhua News Agency Vientiane branch, Lao Chinese Chamber of Commerce, Vientiane Chinese Association, ICBC Limited Vientiane Branch, Bank of China Limited Vientiane Branch, and famous Chinese and Lao enterprises also attended the ceremony.

The project aims to promote industrialization, urbanization, and investment in Laos while modernizing agriculture and advancing the service industry. Consisting of three sections: potash fertilizer industrial park, non-potash industrial park, and Asia-Potash Town, the project covers a total area of about 2,000 hectares, with an estimated investment of USD 4.31 billion.

It will leverage the advantages of Laos government support, mineral resources, power energy, and labour and land cost to spur Laos to form an industrial pattern of import substitution and export for earning foreign exchange.

Relying on the enterprise's potash ore resources, the potash fertilizer industrial park is poised to expedite the growth of the potash fertilizer industry and achieve a production capacity of 3 million tonnes by the end of 2023, 5 million tonnes by 2025, with plans to eventually reach 10 million tones.

The industrial park embodies a vision to establish the enterprise as Asia's leading producer and processor of potash fertilizer and to propel Laos toward the world's fourth-largest potash fertilizer production base.

The Non-potash Industrial Park conducts investment attraction with resources such as coexisting minerals of potash mines, coal mines, and bauxite to develop the way of utilizing industrial chain and supply chain for resources and produce high value-added and diverse product clusters. Besides, it is also equipped with self-owned power plants with wind or solar power generation to create electrical energy as its advantage. Moreover, it undertakes the transfer of global industrial chains and supply chains to vigorously facilitate mineral resource development in Laos, thus contributing to the transformation of Laos from a resource power to an industrial power.

The Asia-Potash Town is built as a modern, multifunctional urban complex that includes facilities for healthcare, education, commerce, sports, and services. On the one hand, it allows farmers to enter the town and be trained as industrial workers, thus leveraging the advantage of labour cost. On the other hand, it serves as a window for Laos to showcase itself to the world, thus attracting global investors and entrepreneurs to gather in Laos.

At the signing ceremony, Tong Yongheng, Executive Director and General Manager of SINO-KCL, delivered a speech.

He stated that the Asia-Potash International Intelligent Circular Industrial Park is a platform for developing industrialization and urbanization, as well as showcasing Laos' development advantages and providing a driving force for its economic and social development.

It is also a platform for Laos to seize development opportunities, and undertake the transfer of global industrial chains and supply chains amidst global economic recession and geopolitical conflicts. Furthermore, it is a platform that gathers excellent enterprises and talents around the world to invest, start businesses, and seek common development.

After the Asia-Potash Industrial Park project is put into operation, Laos is expected to see an annual fiscal revenue of approximately USD 320 million, an increase in foreign exchange reserves of about USD 1.7 billion, and a drive of local employment for 30,000 to 50,000 people.

It will provide important support for the high-quality development of Laos' economy and society, and play a significant role in consolidating the friendship between China and Laos and building a community with a shared future between the two countries.

KPL