Nghi Son Cement targets higher revenues

Nghi Son Cement targets higher revenues
Published: 27 February 2004

Hanoi: Nghi Son Cement Corporation in central Thanh Hoa province has worked out this year’s plan to record US$94m in sales revenues and net profit of US$12m, spend US $28m on settling its initial debt, and remove most of accumulated losses, announced Ryuichi Hirai, the corporation’s General Director, at his meeting with press agencies on the occasion of Lunar New Year 2004.

Accordingly, Nghi Son Cement Company will try to produce over 1.82Mt of clinker and obtain cement production and sale of 2.15Mt in 2004. With the theme for 2004 of "Reinforcing Foundation - Stimulating Next Growth," the company will continue improving its human resource, the effectiveness in management and business activities, and strengthen the "Nghi Son Cement" trademark, said Ryuichi Hirai.

Following guidelines of the Vietnamese Government, the Ministry of Construction, and the Thanh Hoa People’s Committee, the Board of Management has approved an ambitious expansion plan, including the second Line Project comprising the second complex production line in Nghi Son main plant, a distribution terminal in the Central of Vietnam, and two cement tankers. Ryuichi Hirai remarked the feasibility study of the plan is being undertaken and will be early submitted to the Government for approval, through the Ministry of Planning and Investment. "Upon the completion before 2010, we will double the current cement capacity to 4.3 million tonnes per annum. Our position in the North, the Central and the South will be further strengthened, enabling us to satisfy better our loyal customers," according to the general director.

In 2003, Nghi Son Cement Company gained sales revenues of VND1,436 billion (US$92.05m), marginally higher than the scheduled plan, and contributed VND 118 billion (US$7.56m) to the State budget. The company also repaid US $29m to its initial debt. Its performance last year with 2.1Mt of cement production and sale, 1.82Mt of clinker, and profit of US$10.89m was even more encouraging, especially in the context of regional economic integration and keen competition in the cement industry. The company has to date successfully maintained the quality management system ISO 9000:2001 to effectively support its production and business activities.