The Aditya Vikram Birla Group, on 17 March 2006, announced an investment of $350 million for setting up plantation and pulp-making facilities in Laos.

The project promoted by three group companies -- Grasim Industries (India), Thai Rayon (Thailand) and PT Indo Bharat Rayon (Indonesia) -- will involve plantation of eucalyptus and setting of a pulp production plant.

The three promoting companies have acquired 50,000 ha of land from the Laos government on a 75-year lease. The project will begin with large scale eucalyptus production (which has a growth cycle of seven years) and the setting up of a pulp-dissolving plant at the end of the seventh year, to coincide with the first harvest year. The pulp plant will have capacity of 20,000 tpa.

The pulp produced in Laos will be exported to the group's existing rayon fibre units worldwide and also to newer ones. The Laos project will ensure complete integration of operations -- from plantation to final viscose staple fibre production.

About Laos: Laos -- officially known as the Lao's People Democratic Republic or Lao PDR -- is located in the IndoChina region. The country shares its borders with China, Cambodia and Vietnam. Lao PDR has a geographical area is 236,800 sq.km. divided into three regions -- Northern, Central and Southern areas -- housing a total population of 45 lakh. The official language is Lao, but English and French are used in business communication. Lao PDR was originally known as Lane Xang -- The Land of Million Elephants.