Cement plants risk oversupply

Cement plants risk oversupply
Published: 11 June 2008

While Vietnam is facing a cement shortage, the situation may reverse by 2010 when a series of cement plants start up, warned the Vietnam National Cement Association (VNCA).
According to VNCA, total output of cement facilities nationwide is estimated to be standing at 36Mta, while local demand hit nearly 40Mt, leading to the shortage.
However, around 28 new cement plants are being designed to produce an additional 20Mt, expected to be put into operation in 2008-09.
Another 18 cement factories with a total designed capacity of 14Mt are anticipated to be running by 2010, bringing the national capacity to more than 60Mt, surpassing demand by an estimated 10Mt.
Industrial experts said the warning was sent out when the facilities were being planned. Only over the past three years did the Ministry of Construction (MoC) ask the Government for permission to build an additional 15 cement plants with a total designed capacity of nearly 14Mt.
The association reported that the warning mainly applied if all capacity was met as planned. With many projects stagnant in the present high inflation, the supply also may not be enough to satisfy the rising demand.