fertilizer Photo: CFP

The government of Laos on Saturday signed a cooperation memorandum with Chinese firm SINO-AGRI International Potash Co to build an intelligent potash fertilizer industrial park in Vientiane, the Xinhua News Agency reported on Sunday.

The park will receive about $4.31 billion in investment, which is expected to generate $320 million of annual fiscal revenue for Laos and create 30,000 to 50,000 local jobs, Xinhua reported, citing Tong Yongheng, general manager of SINO-AGRI. 

SINO-AGRI is a subsidiary of Asia-Potash International Investment (Guangzhou) Co, a world leading potash fertilizer supplier based in South China's Guangdong Province.

The park will be separated into three sectors - a potash fertilizer sector, a non-potash sector and an Asia-Potash village. The potash fertilizer sector will be used to develop an industry based on local abundant potassic salt ore. 

The non-potash sector will focus on enriching resource utility with local coal, bauxite ore and other associated resources generated from the potash industrial line. The Asia-Potash village is set to attract investors and talent to accelerate the urbanization of Laos. 

SINO-AGRI has the right to exploit 35 square kilometers of potash salt deposits in Khammuane Province, Laos. The area has total potash salt reserves of over 1 billion tons, the company's official website showed. 

Potash fertilizer is one of three core fertilizer types in the agricultural industry. However, China has a relatively high reliance on imports, according to a report by Guosen Securities in April 2022.

China's potash fertilizer consumption was 13.84 million tons in 2021. Of the total, China imported 7.57 million tons, with an import rate surpassing 50 percent, the report revealed.

The potash fertilizer output of Chinese firms in Laos was 1.5 million tons in 2021, and it is expected to reach 5 million tons in 2025, the report said. 

Global Times