Lucky Cement to invest US$300-400m to set up plant in Vietnam
Lucky Cement Corp, one of Taiwan’s leading cement makers, plans to invest, within three to five years, about US$300-400m to establish a cement plant and related facilities in Vietnam. The projected plant, estimated to turn out 1.8Mt of cement per year, will include four to five cement storage and conveying stations designed to secure convenient delivery to local clients.
The cement market in Vietnam boasts a sharp annual expansion of more than 20%, and there are now only two Taiwanese-invested cement plants operating there. One of them is invested personally by L.C. Chen, chairman of Lucky Cement, and the other is by ChinFon Group, which is a leading conglomerate engaged mainly in banking services and the manufacture of autos and motorcycles. Each of the two cement plants generates more than 2.2Mt of cement in Vietnam per year.
Lucky Cement commands less than 10% of Taiwan’s cement market. In the last three years, the company’s annual revenues lingered at NT$3.8-4.2 billion (US$115.15-127.27 million at US$1 = NT$33), with gross profit rate of around 15%.
Chen disclosed that Lucky will invest US$150 million to establish one kiln in northern Vietnam next year, with daily cement output of 5,000t, and will then spend another US$100-200m to set up four to five cement storage and conveying stations in northern, central and southern Vietnam to broadly supply cement to the country.
Published under Cement News
