The successful startup of the Mitr Lao operation reflected the group's effective use of technology, potential to expand investment into neighbouring countries, and to be competitive in international markets through quality products, said Buntoeng Vongkusolkit, group managing director for Asean business.

"This investment features the transfer of technologies in sugarcane cultivation and sugar production in which we are highly specialised to Laos, ranging from cane stock preparation, to soil preparation, cultivation, cultural practice to advanced sugar manufacturing processes."

Mitr Phol also was responsible for providing public utilities including roads and weirs in order to provide more convenient transport for community members and workers in cane fields.

"Our operation creates employment for more than 5,000 local people which subsequently generates approximately US$3 million in monthly revolving income," said Buntoeng.

As well, the company is providing educational support for young people and also paying the equivalent of 24 million baht in tax to the Laotian government.

With registered capital of US$20 million, Mitr Lao Sugar holds a 40-year concession, with an option for a 20-year extension, for cane plantations and milling operations on 62,500 rai of land in Savannakhet province. Its initial investment was $63 million or about 2.3 billion baht.

The company has broadened its plantation sites to nearby areas including Outhomphone in Savannakhet and Xebangfai in Khammouan province.

In the 2008-09 production year, Mitr Lao Sugar will utilise a plantation area of 40,000 rai. Crushing volume for the year is forecast at 230,000 tonnes, which would generate approximately 24,000 tonnes of sugar.

Mitr Lao will request a concession for 62,500 rai more in the 2009-10 production year. This will increase its capacity to 500,000 tonnes of cane annually.