Under the agreement, which the government and company signed on October 31, Lao Agro Tech has the right to conduct a feasibility study of a wood processing plant in Ta-Oy and Samouy districts, Saravan province. According to information obtained by Vientiane Times at the signing ceremony, the company expects to invest about US$10 million in the cultivation of Acacia auriculiformis on an area of 5,000 hectares. If the project goes to plan, it will generate numerous jobs for local people.
Lao Agro Tech President Apisith Rujikeatkhamjorn said the company was established 10 years ago and was registered as a public company on the Lao Securities Exchange. The company’s main business is the production of palm oil and it has its own palm variety known as Lao vieng. The company grows palm trees and has a biodiesel refinery plant in Naxaithong district.
After learning of a new business opportunity, the company decided to invest in the commercial cultivation of Acacia auriculiformis, as there is high demand for this wood on the international market. The main markets for Acacia auriculiformis-based products are Thailand, China, South Korea, and European countries. Spotting a business opportunity, the company entered into a Memorandum of Understanding with the government to conduct a feasibility study of an industrial tree plantation, Mr Apisith said.
Under the agreement, the company expects to begin the study in the next few months. Deputy Director of the Saravan provincial Planning and Investment Department, Mr Bounheng Xayasene, said provincial authorities welcomed the investment as it would create jobs and income for local people. He also said local authorities expected to earn revenue from the company in the form of taxes, which would be a significant contribution to the growth and prosperity of Saravan province.
Information source: Vientiane Times.
