Vietnam investors propose more cement projects
Several cement producers are seeking permission from the Vietnamese Ministry of Construction to build new plants, as cement demand is forecast to increase in the future, Saigon Times newspaper said Wednesday.
Holcim, one of the country’s leading cement makers, plans a 3.5Mt plant, and Bac Kan is mulling a new 900,000-ton factory. Luksvaxi, Phuc Son, Hoa Phat and Nam Dong are queuing for licenses to build plants with annual capacity of 1.8Mt.
If $1 billion is invested in infrastructure work, Vietnam will need 1.5Mt of cement, which proves the demand will grow strongly in the years to come, the ministry noted.
To facilitate the cement industries development, the ministry has proposed several measures to the Government, such as construction of all road and seaports in areas where cement plants will converge and assigning shipbuilders to build vessel specializing in carrying clinker from north to south.
According to an industry development plan, cement consumption is projected to grow 9% annually from 2011to 2015 and 4.5% from 2016 to 2020. Vietnam will consume 35.8Mt of cement this year, 49Mt by 2010, 76Mt by 2015 and 94Mt by 2020.
Local cement producers are capable of producing 57Mt by 2010, which is 7.5Mt higher than the estimated demand. However, by 2015, the surplus will narrow to 2.6Mt, and by 2020, supply will fall behind demand.
Published under Cement News
