Vietnamese cement maker The Vissai is completing legal procedures to acquire a cement project in the central province of Nghe An from Do Luong Cement JSC with a registered investment of nearly VND1.739trn (US$83.2m). “The acquisition is nearly completed,” said a representative of The Vissai said in an interview with Dau Tu newspaper’s reporter.
With the Do Luong cement plant, The Vissai will have six cement plants with a combined capacity of more than 7Mta. Construction of the Do Luong cement project was kicked off in 2007 by Do Luong Cement JSC, which has a chartered capital of VND450bn.
Founding shareholders of Do Luong Cement JSC were: Vietnam Machinery Erection Corporation (Lilama), Civil Engineering Construction Corporation No.4 (Cienco 4), Construction Corporation No.1 (CC1) and Cau Duoc Cement JSC. However, these firms have gradually withdrawn from the project, with Lilama transferring its controlling stake to Housing and Urban Development Holdings (HUD Holdings). The withdrawal has forced Do Luong Cement JSC to sell the project, the Dau Tu newspaper reported.
In 2011, The Vissai also acquired Hoa Phat cement plant, which has a capacity of 1.2Mta, from Hoa Phat Group to raise its total cement output to 6.2Mta.