The Karen National Union (KNU) has denied giving any permission for a proposed 10,000tpd cement plant to be established in Hlaingbew Township, Myanmar.

According to Gen Saw Johnny, chief of staff of the Karen National Liberation Army (KNLA) under the KNU: "We won't accept projects that will bring negative impact to the public. We will consider it if it will bring benefits to the public. Everything depends on the public's desire. We've learned that the company (Yadanar Sai Kaung Myat Kyaw Co) has earmarked the project. We haven't given our permission yet."

The proposed plant would be situated near Hnget Pyaw Taw village in Hlaingbwe Township.Yadanar Sai Kaung Myat Kyaw Co aim to invest US$760m in the project and to provide 5000 jobs for local residents.

Yadanar Sai Kaung Myat Kyaw Co held a meeting with local residents in September to discuss the cement plant project and Karen News reported that the company had reached an initial agreement with respective state ministry to build the plant and compensate local land owners.