The Chinese government’s One Belt One Road initiative has many companies intensifying their business investments across Southeast Asia.
The One Belt One Road initiative aims to create a large economic zone across land and sea between China and Europe. The direct investments by Chinese companies along the new Silk Roads has increased by 66% year-on-year to approximately $12 billion, as reported by Nikkei Asian Review.
Anhui Conch Cement, the second-largest cement manufacturer in China, will open four new plants in Indonesia with an annual production capacity of more than 12 million tons. The company also plans to start production at a Myanmar factory in February in addition to two plants in Laos.
Shandong Sun Paper Industry is planning to spend $290 million to setup paper production facilities in Laos to cater to the growing local demand. Magang Holding has also announced plans to establish a steel mill in Kazakhstan with a yearly production capacity of 1 million tons.
Chinese Premier Li Keqiang, along with several officials, visited various countries through the Silk Road routes to market infrastructures like the high-speed railway and nuclear power plants. The initiative will use emerging countries as a viable outlet for labor and excess facilities in the cement and steel industries, in addition to encouraging Chinese companies to operate worldwide.
Excerpts and image courtesy of Nikkei Asian Review