Sweet Production

By Zhang Zhiwen

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Sweet Production

By Zhang Zhiwen

The Chinese-invested sugar refinery has a state-of-the-art sugar production line

Early in the morning， the sugar refinery in Northern Cambodia's Khet Preah Vihear is bustling. Heavy-duty trucks carrying sugarcane crops are unloaded onto a huge conveyor belt， before the cargo is transferred to the production line. From there， the sugarcane is pressed， refined and washed.

“This project will play a leading role in Cambodia's sugar industry，” said Cambodian Senior Minister of Industry and Handicrafts Cham Prasidh. “Sugar is becoming one of our major export commodities， another symbol of our nation besides Angkor Wat.”

The project， called Rayfong International（Cambodia） Sugar Refinery， is a Chineseinvested operation. Its state-of-the-art sugar production line carries the world's largest daily sugarcane processing capacity. Cambodia is now the owner of the project's production line.

Demonstration Project

Cambodian Prime Minister Hun Sen attended the project's launch ceremony with his cabinet ministers. In his speech， he said that Rayfong is closely related to Cambodia's industrial development. To produce sugar，Rayfong purchases sugarcane produced by local farmers， who also purchase Rayfong's products in the local market， resulting in a complete cycle of farming， industrial production and commerce. The establishment of the sugar refinery will stimulate the local farmers' sugarcane production. Meanwhile， construction of a power plant， new roads and water conservancy projects are all under way.

Liu Feng， Chairman of the Board of Rayfong International， said that his corporation plans to invest US$1 billion in Khet Preah Vihear to build a modern agro-industrial park in three phases， all in the interest of sugarcane planting and production. At present， investments totaling US$360 million have been completed.

According to project designs， Rayfong's annual sugarcane processing capacity will total 3 million tons， resulting in 360，000 tons of raw sugar. Before the project began， Cambodia's annual raw sugar production capacity was less than 30，000 tons. Once completed， the refinery will turn Cambodia from a net sugar importer to a net exporter.

“Forming Asia's largest sugar refinery，our enterprise has attached great importance to environmental protection in our hostcountry，” said Pan Shimin， Chief of Rayfong International's Board of Supervisors.

Pan explained that the most prominent feature of the sugar refinery is its green economic cycle.

“The collateral waste from sugarcane processing gets used properly，” Pan said. “Bagasse［dry pulp residue］， for example， is burnt for electricity. Molasses is used to produce alcohol. Others are used to produce compound fertilizer. Either the plant ash from burning or the compound fertilizer eventually goes back to the farmland， causing no harm to the soil，water or other resources.”

Chinese Ambassador to Cambodia Bu Jianguo said that the Rayfong operation has established a new bond of cross-domain cooperation between the two countries. Cooperation of this nature meets Cambodia's rising demand for consumer goods.

“This project will play an exemplary role for other Chinese enterprises in investing in Cambodia，” Bu said.

Settling Down in Cambodia

In the agro-industrial park， the sugar refinery is surrounded by 45 farms， each covering 700 hectares. More than 7，000 direct job opportunities have been created for local employees in areas of farm management， sugarcane transport and sugar production. These job opportunities are likely to double in the future.

Local employee training is vital. Cai Juping， a Cambodian technician at a pressing workshop， was sent to China for technical training.

“Before going to China， my understanding of sugarcane pressing was virtually nothing，”Cai said. “I learned a lot. The sugar refinery has put me in a very important position. My income has greatly improved compared to my previous job， which was in a garment factory.”

Those who have benefited from the refinery are not only the employees， but also nearby farmers. To meet their demand for raw materials， Rayfong signed contracts with local sugarcane farmers， helping them climb out of poverty.

“I have signed a 10-year contract with the refinery，” said a 55-year old sugarcane farmer from a nearby village. “Within those 10 years，the refinery will apply fertilizer to my sugarcane field. They will also provide us with some fuel for production. I'm truly grateful！”

With sugarcane planting， his family income has tripled to 9 million riel （US$2，200）.

Smiling children with sugar donated by the refinery

In early days， local farmers did not always support the Rayfong project， and the corporation spared no effort to win them over. Engagement in social welfare activities including donations of fire engines， cash for temple ruins protection and education has greatly improved the company's reputation among locals. One farmer said the corporation's philanthropy changed his mind， and when he saw fellow villagers enjoy a sharp rise in income aTher signing contracts， he too signed on.

“I look forward to a good harvest next year，” the farmer said.

Bright Prospects

Ambassador Bu has a deep understanding of the production capacity cooperation that exists between the two countries. She indicated that traditional friendship between China and Cambodia will continue to flourish in the future， and with the development of China's Belt and Road Initiative， regional cooperation is set to reach a new height. The Cambodian government has welcomed Chinese enterprises to invest in Cambodia， with an aim to enhance economic strength. By the first half of 2015， Chinese investment in Cambodia totaled US$10.3 billion， making China Cambodia's largest source of foreign investment. At present， more than 500 Chinese firms have invested in Cambodia.

“Cambodia is an important country along the Belt and Road，” Minister Cham said.“There is great potential for Chinese enterprises to invest in Cambodia's industry. Cambodia has plenty of raw materials， and Chinese enterprises can invest here to build factories for further processing. We have sufficient human resources. Investment here is destined to be a win-win situation.”

Veng Sakhon， Cambodia's Minister of Agriculture， Forestry and Fisheries， said that there is broad space for cooperation in agriculture between China and Cambodia.

“The Chinese government has supported Cambodia in many fields， including agriculture，” Veng said. “The Belt and Road Initiative proposed by China represents a great opportunity for Cambodia. We can strengthen cooperation in agricultural infrastructure， for example， which will lead Cambodia's economic development to a higher level.”