Displaying items by tag: Vietnam

Vietnam: Vietnam Cement Industry Corporation (Vicem) said that its cement and clinker sales in May 2015 grew by 10% year-on-year to 2.01Mt. Of the volume, 1.84Mt of cement and clinker were sold to the domestic market while 162,000t were exported.

In the first five months of 2015, Vicem's cement and clinker sales fell by 1.4% year-on-year to 9.08Mt. Of this, 8.0Mt was sold to the domestic market, up by 6.2% year-on-year, while 1.06Mt was exported, down by 34% year-on-year. Vicem produced 6.97Mt of clinker and 7.61Mt of cement in the first five months of 2015, rising by 5.1% and 4.1% year-on-year respectively. Of this, 1.47Mt of clinker and 1.82Mt of cement was produced in May 2015.

Vicem plans to produce 1.52Mt of clinker and 1.58Mt of cement and aims to sell 1.73Mt of cement and clinker in June 2015.

Vietnam: Vietnam is estimated to have produced 26.6Mt of cement in the first five months of 2015, up by 9% year-on-year. The total includes 6.3Mt in May 2015, according to the government-run General Statistics Office.

Vietnam: FLSmidth has received a US$109m order from the Vietnamese cement producer Xuan Than Group for the supply of a complete 12,000t/day capacity cement plant. The plant will be located approximately 100km south of Hanoi. Once completed, the plant will be the largest cement plant in Southeast Asia with the most energy-efficient equipment, state-of-the-art emissions control systems.

"The Vietnamese cement market is expected to grow over the coming years and it is a well-known market to FLSmidth as we have been present in the country for many years. The construction of the largest cement plant in Southeast Asia proves our strong position in the area," said president of the cement division, Per Mejnert Kristensen. The order will be booked by the cement division and contribute beneficially to FLSmidth's earnings until mid 2017.

Vietnam: The Vietnam National Cement Association (VNCA) said that growing cement exports have helped domestic cement plants to slash inventories in recent years.

Vietnam produced around 70.6Mt of cement in 2014, 15% higher than 2013. Domestic consumption totalled 50.9Mt, while export sales reached 21.1Mt, up by 10% and 30% year-on-year respectively. Big producers like Vicem, Nghi Son, Chinfon, Thang Long Vina, Vissai and Thang Long contributed 80% of total cement exports in 2014. Their major markets were Bangladesh, Singapore, Hong Kong, Malaysia, the Philippines and Indonesia.

Nguyen Quang Cung, chairman of VNCA, said that the supply - demand balance would continue to improve in 2015 as demand for construction materials in the country and abroad is forecast to pick up. However, the VNCA warned that local cement enterprises would have to cope with fiercer competition at home and abroad. Cung said that Cong Thanh Cement Co would commission a 3.6Mt/yr clinker line in Thanh Hoa in June 2015. In addition, the Dong Lam and Thach My cement plants have run at full capacity so far in 2015. An imbalance between supply and demand might occur if clinker and cement exports decline as Vietnam now faces tough competition from other exporting countries like China, South Korea and Thailand.

Vietnam: Vietnam produced 19.9Mt of cement in the first four months of 2015, up by 5.3% from the same period of 2014, including 5.9Mt in April 2015, according to the government-run General Statistics Office. The Ministry of Construction has predicted that Vietnam's sales of cement and clinker will rise by 1.5 - 4% to 72 - 74Mt in 2015, of which domestic sales will rise by 4.5 - 6.5% to 53 - 54Mt, while exports will be at 19 - 20Mt.

Vietnam: The Indonesian state-owned cement manufacturer Semen Indonesia plans to acquire a second Vietnamese cement company.

Semen Indonesia's finance director Ahyanizzaman said that the company has allocated a total capital expenditure of US$546 – 857m in 2015 to expand its operations, which includes the acquisition of the Vietnamese company. He said that the company was currently conducting a due diligence audit on the Vietnamese firm and that this was expected to be completed by the end of the first half of 2015. "The Vietnamese company is a private firm, which has a local market share of about 4%," said Ahyanizzaman.

If Semen Indonesia goes ahead with the acquisition, it will be its second subsidiary in Vietnam. Through its Vietnamese subsidiary Thang Long Cement Company, it produces about 2.5Mt/yr a year in the country. Ahyanizzaman said the company would borrow up to US$77.9m to support the expansion plan.

Semen Indonesia president director Suparni said that the acquisition plan was part of the company's strategy to take advantage of the ASEAN Economic Community (AEC), which would be implemented before the end of 2015. "Domestic and regional operations cannot be separated when the AEC is implemented, so we want to synergise our business," said Suparni.

Vietnam: Vietnam produced 14.3Mt of cement in the first quarter of 2015, up by 5.9% from 2014, according to the government-run General Statistics Office. In March 2015, the country's cement production fell by 4% year-on-year to 5.5Mt. In the first two months of 2015, Vietnam generated 8.8Mt. The Ministry of Construction has predicted that Vietnam's cement and clinker sales will rise by 1.5 - 4% year-on-year to 72 – 74Mt in 2015, of which domestic sales will rise by 4.5 - 6.5% to 53 – 54Mt, while exports will be at 19 – 20Mt.

Vietnam: Ha Tien 1 Cement Company is negotiating with Indonesian partners to import coal from Indonesia, according to the Saigon Securities Incorporated (SSI). Under the current laws, businesses must seek permission for the import of energy products.

Coal accounts for 40% of clinker and 32% of cement production costs. Ha Tien 1 is considering importing coal because the market price has fallen sharply with the drop in crude oil prices. Ha Tien 1 currently buys coal from Vinacomin at US$100/t. The coal price in Indonesia is US$52/t free on board (FOB).

If Ha Tien 1's proposal to import coal gets approval from the government, the cement manufacturer would cut production costs and be able to reduce sale prices and boost its sales. If Ha Tien 1 could import 25% of the total coal it needs for production, it would be able to reduce its production cost by 8%.

Vietnam: The Government of Vietnam has approved the Ministry of Construction's proposal to increase the capacity of two cement plants in Ha Nam and Nghe An Provinces.

The Thanh Liem Cement plant in Ha Nam Province's Bong Lang Commune will be upgraded with an additional 2.3Mt/yr capacity production line, which is expected to open in 2018. Currently, the plant has just one production line with 450,000t/yr of cement production capacity. Nguyen Quang Bay, director of the Thanh Liem Cement plant, said that it was necessary to increase the capacity of the plant in order to fully exploit the limestone resources in the province.

The Song Lam Cement plant, which is currently under construction in Nghe An Province's Bai Son Commune, will now have 4Mt/yr of cement production capacity when complete. Construction on the plant began in February 2015 with investment capital of US$494m. Three production lines will be built by 2020. The first two are scheduled to be put into operation in 2017.

Prime minister Nguyen Tan Dung asked the Construction Ministry to re-examine cement plant projects in the 2011 - 2020 period and forecast market demand, then report it to the Government later in 2015. Cement consumption reached 5.87Mt in January 2015, an increase of 30% compared to January 2014, according to the Construction Ministry's Building Material Department. Domestic cement production currently meets demand, according to the department.
The Vietnam Cement Association predicts that cement exports in 2015 could earn as much as US$1bn via the export of 20 - 21Mt of cement and clinker, a 15% increase in value year-on-year.

Vietnam: Hoang Phat Vissai Group began work on the Song Lam cement plant with an investment of US$488m in Vietnam's central province of Nghe on 4 February 2015.

Located in Bai Son commune and being transformed from the current Do Luong cement plant, the new 5.6Mt/yr clinker plant will be developed in two phases and will be ready for operation within 18 months, according to company chairman Nguyen Ngoc Oanh. The first phase will last until 2017, with two production lines with a combined capacity of 12,000t/day of clinker installed. The second phase, adding 6000t/day of clinker, will be developed in 2017 - 2020.

Vietnam has 74 cement production lines with a combined output estimated at 81Mt/yr, while sales of cement and clinker are projected to be 73Mt for 2015, according to the data from the Ministry of Construction. Of the sales, 52 – 53Mt are expected to be sold to the domestic market, while 19 – 20Mt will be exported.