The Vietnamese Ministry of Planning and Investment has agreed to Nghi Son Cement Joint Venture Company’s proposal of raising investment capital by $248 million, local media said. The company, therefore, has become the leader among 389 foreign-invested firms in Vietnam to be allowed to raise investment so far this year.
The capital increase by Nghi Son JV aims to build its second production in Thanh Hoa province with an annual capacity of 2.15Mt of cement and a cement distribution base in central Khanh Hoa province, and to purchase two vessels to transport bulk cement from north to southern Vietnam
When completed in 2008, the joint venture will become the biggest cement plant in Vietnam with a total capacity of 4.3 million tons of cement. The company’s first production line also has a designed capacity of 2.15Mta Of the total investment increase, the joint venture hopes 70 per cent will come from commercial loans. The Vietnamese side is expected to contribute 35 per cent of the total investment, while the Japanese partner will contribute 65 per cent.
The Nghi Son Cement Joint Venture Co. is a $373m joint venture between the Vietnam National Cement Corp. and Japan-based Taiheiyo and Mitsubishi groups, in central Thanh Hoa province plans. The company had forecasted to produce and distribute just over 2Mt of cement this year, and make total profits of $12m out of total revenues of $94m.