VNCC to inject cash into new projects

VNCC to inject cash into new projects
Published: 13 January 2006

The State-owned Vietnam Cement Corporation (VNCC), the country’s largest cement producer in Vietnam, is expected to spend over VND3.8 trillion ($240.5m), a four fold year on year rise, to build new cement factories and equip with advanced technology the existing cement factories this year, reported State media.  The money will be pumped into new cement factories including Tam Diep and Hai Phong cement factories and other major projects such as the But Son cement factory 2, the two new production lines in Bim Son and Hoang Thach factories, Binh Phuoc cement plant, and Ha Tien 2-2 factory, in a bid to satisfy increasing domestic demand.  
 
The commissioning trials of the Haiphong Cement Factory recently has been operated to launch the first batch of 40,000t of high-quality clinker one month earlier than planned. The Haiphong and Tam Diep cement plants, regarded the breakthrough of VNCC this year are expected to officially start operation in the second and third quarter this year, respectively.  
 
Meanwhile, VNCC will also concentrate its capital resources on the remaining projects and set up the distribution and consumption outlets in southern provinces and grinding complexes in Long An, Cam Ranh and Quang Tri provinces. 
 
VNCC plans to produce 9.15Mt of clinker and 13.05Mt of cement in the year, up five per cent and 2.3 per cent against 2005.   It is now reportedly storing 1.4Mt of cement to meet the high demand during the construction season that stretches throughout the first half of this year.  
 
VNCC currently holds a 48 per cent market share in Vietnam.  According to VNCC officials, the domestic annual demand for cement is estimated to hit 46.8Mt by 2010 and around 68Mt to 70Mt by 2020, but the total designed capacity of cement plants across the country now stand at under 25Mt. The country plans to put 21 new cement plants with a combined capacity of 30.25Mta into operation between now and 2008 to meet the increasing demand for the product in the country.