PREAH VIHEAR, Cambodia - Chinese agro firm Rui Feng (Cambodia) International Company began operations at its $360 million sugar production factory here on Tuesday after spending nearly two years for construction.

Cambodian Prime Minister Hun Sen and Chinese Ambassador to Cambodia Bu Jianguo jointly inaugurated the factory, along with a 43,422-hectare sugarcane plantation.

"It is the largest sugar mill in Cambodia," Hun Sen said at the inauguration ceremony, which took part by more than 20,000 people including government officials, local authorities, residents and students.

The mill will produce nearly half-million tons of processed sugar a year for export mainly to Europe and China, he said, adding that the project has created more than 7,000 jobs.

"This huge investment clearly shows that investors have firm confidence in Cambodian People's Party-led government," he said."This also reflects excellent relations and mutual trust between China and Cambodia."

According to the prime minister, so far, the Southeast Asian country has five sugar mills in Kratie, Kampong Speu, Koh Kong and Preah Vihear provinces.

Liu Feng, president of Rui Feng (Cambodia) International Company, said the firm has spent six years preparing land for the plantation and nearly two years building the sugar mill.

"The firm decided to invest in this mega-project after having seen that Cambodia has good political stability, full peace and favorable atmosphere for businesses," he said at the ceremony.

The company would increase its investment in the project to $1 billion by expanding sugarcane plantation, building an ethanol factory and a fertilizer plant, Liu added.

"The company is committed to turning (northern) Preah Vihear Province into the Asia's largest sugar supplier in the future."