Taiheiyo Cement Corp and Mitsubishi Materials Corp said Monday that their joint cement making unit in Vietnam will double its production capacity in order to meet growing demand amid the country’s sizzling economic development. The joint company, Nghi Son Cement Corp, will build a second production line, capable of producing 2.25Mt of cement a year, the two Japanese companies said. Once the second line goes on stream in 2008, Nghi Son’s annual output capacity will be raised from the current 2.15Mt to 4.4Mt, making the company the largest cement maker in Vietnam. Nghi Son Cement is 65 per cent owned by the two Japanese companies and 35 per cent by Vietnam’s public cement company.
The joint company will also develop limestone mines further and build a new cement terminal in the central part of the country in order to set up a nationwide sales network. Total investment in the the output boost will come to US$240m, the Japanese companies said. Nghi Son’s sales and profit are expected to at least double after the unit begins operating the new line, they said. In the year that ended last December, the company posted sales of over 10 billion yen and net profit of 1.5 billion yen.