A Chinese-invested cement factory in central Laos was inaugurated on Thursday in Khammouane Province, expected to serve the construction of China-Laos railway project in the country.

The inaugural ceremony was attended by Lao Deputy Prime Minister Somsavad Lengsavath, who also cut the ribbon for the commence of the factory.

Addressing the ceremony, Governor of Khammouane province Oday Soudaphone said the inauguration of the cement factory is a gift for Lao people on the occasion of the 40th anniversary of the establishment of Lao People's Democratic Republic from the Chinese side.

The Jixiang cement factory, with an investment of 120 million US dollars, is a BOT (Build, Operate and Transfer) project signed between China's Yunnan Provincial Energy Investment Group and Lao Ministry of Planning and Investment in March, 2012.

Duan Wenquan, Chairman of China's Yunnan Provincial Energy Investment Group, said at the ceremony that his group will continue to further participate in Laos' infrastructure construction projects following the "Belt and Road" initiative proposed by China.

A representative of China's Yunnan Provincial Energy Investment Group told Xinhua that the designed capacity of the factory is 1 million ton a year, accounting for 20 percent of Laos' total cement production capacity.

The factory will focus on production for major infrastructure projects in Laos and the China-Laos railway construction, a ground-breaking ceremony of which was held in capital Vientiane on Wednesday.