Holcim Vietnam Ltd. has purchased a cement factory from Vietnam’s Cotec Group to expand its production in the country, a Cotec official said Friday.
The factory, located in Ho Chi Minh City, has a production capacity of 1Mta and employs more than 200 workers, said Vu Minh Hieu, a senior official of Cotec Group.
Hieu declined to say how much the factory was sold for, but the Ministry of Planning and Investment said in its Dau Tu newspaper Friday that the price was $45m.
"We had to sell the factory to improve cash flow, following the government’s move to tighten credit," Hieu told Dow Jones Newswires.
Holcim Vietnam is a joint venture between Switzerland’s Holcim Group and Ha Tien 1 Cement Co. The US$441m joint venture now runs several cement production facilities with combined capacity of more than 4.5 million tons a year in southern Vietnam.