The Mekong Agro-Industry Company will build a factory producing
biodiesel products in Savannakhet province in 2010, in an effort to
increase the range of fuel types available to consumers.

Company consultant, Mr Phonesay Chaleunsouk, said the factory would
use 10,000 tonnes of jatropha plants each year to produce biodiesel.

The corporation plans to plant 150,000 hectares of jatropha throughout
the country over the next 10 years to ensure a sustainable supply of
raw material for the factory in the future.

More than 5,000 hectares of jatropha have been planted since the
start of the year, Mr Phonesay said.

The company is operating under the Lao government's 2+3 policy, where
local residents provide land and labour and the investing company
supplies funding, saplings and a profitable market opportunity.

The project will provide local people with the opportunity to earn
extra income and support the government's policy of poverty
eradication by 2010, Mr Phonesay said.

The company has also planted 2,500 hectares of eucalyptus trees for a
pilot project to supply paper factories facing a shortage of raw
materials.