Displaying items by tag: VICEM
Vietnam government to sell stake in cement giant
05 July 2016Vietnam: The Ministry of Construction is planning to sell its stake in Vicem through an initial public offering in the fourth quarter of 2016. The cement producer has said previously that the state is planning to reduce its holding to 51%. Investors from Indonesia and Thailand have expressed interest in acquiring stakes in Vicem, according to the Dau Tu newspaper.
Vicem, previously known as the Vietnam Cement Industry Corporation, has stakes in 31 companies, mostly cement producers and distributors. Its gross profit reportedly doubled last year to US$105.2m in 2015. It currently controls 34% of the market in Vietnam.
Vietnam: Vietnam Cement Industry Corporation (Vicem) sold 16.3Mt of cement and clinker in the first nine months of 2015, up by 1.5% year-on-year. Of the volume, 14.9Mt of cement and clinker was sold on the domestic market, up by 8.6% year-on-year, while 1.44Mt was exported, down by 39.4% year-on-year.
In the third quarter of 2015, Vicem's cement and clinker sales grew by 6.2% to 5.61Mt, of which 5.27Mt of cement and clinker was sold on the domestic market, up by 11% year-on-year, while 337,000t was exported, down by 37% year-on-year. Vicem's cement production grew by 10% year-on-year to 4.97Mt in the third quarter of 2015, while its clinker output rose by 8% to 4.34Mt.
Vicem plans to produce 4.42Mt of clinker and 5.45Mt of cement in the fourth quarter of 2015, down by 0.8% and 5.7% respectively year-on-year. It also aims to sell 6.07Mt of cement in the fourth quarter, raising its full-year target to 22.4Mt. In 2014, Vicem's clinker production grew by 0.7% to 16.5Mt while its cement output rose by 10.3% to 18.5Mt.
Vietnamese cement producers see improved results
25 August 2015Vietnam: Cement firms in Vietnam are reported to be 'upbeat' as rising domestic consumption has lifted their profits in the first half of 2015. Tran Viet Thang, General Director of Vietnam Cement Industry Corporation (VICEM), reported that, despite unfavourable exports, VICEM still registered a pre-tax profit of US$62.6m in the first half of 2015. This is 34% more than the US$46.7m posted in the first half of 2015. VICEM expects that its full-year profits will surpass US$93m in 2015.
The most impressive business performance among VICEM members was from Ha Tien 1, which saw its first half post-tax profit spike to US$18.4m, a surge in growth that dwarfs the US$604,650 profit from a year earlier. The company's net revenue rose by 19.4% year-on-year to US$96m. Its gross profit rose by 51.5% to US$20m.
Hoang Mai made nearly US$1.4m in post-tax profits in the first six months of 2015, against US$1.1m a year ago. Its net revenue from sales and service supply in the second quarter came to US$23.2m compared to US$21m in the same period in 2014.
Apart from VICEM member units, other companies in the cement industry have also reported a promising returns, with strong growth in the first half. Cam Pha Cement JSC, based in the north-eastern province of Quang Ninh, saw a 21% jump in sales volumes during the period, generating a revenue of US$51m and a profit of US$3.1m.
In 2015 Vietnamese cement consumption is forecast to hit 74 - 75Mt, with a further 19-20Mt earmarked for export.
Vicem Cement’s sales volumes fall by 0.5%
22 July 2015Vietnam: Vietnam Cement Industry Corporation (Vicem) has said that its cement and clinker sales fell by 0.5% to 10.7Mt in the first half of 2015, according to Vietnam News Brief Service.
Some 9.58Mt was sold to the domestic market, up 7.1% year-on-year, while 1.15Mt was exported, down by 37.7%. In the first half of this year, Vicem produced 8.36Mt of clinker and 9.2Mt of cement, rising by 5% and 6.1% year-on-year, respectively. As of 30 June 2015, Vicem had 1.75Mt of cement and clinker inventory, including 1.41Mt of clinker, equivalent to 28 days of production.
Vicem aims to produce 4.26Mt of clinker and 5.21Mt of cement in the third quarter of 2015. It also aims to sell 5.97Mt of cement in the third quarter, raising the full-year target to 13.1Mt. In 2014, Vicem's clinker production grew by 0.7% year-on-year to 16.5Mt while its cement output rose by 10.3% to 18.5Mt.
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.
Vicem cement output rises 4.7% in year to date
20 August 2014Vietnam: State-owned Vietnam Cement Industry Corporation (Vicem) produced 10.2Mt of cement in the first seven months of 2014, a 4.7% increase compared to the same period of 2013. Vicem's clinker output, however, dipped by 1% year-on-year to 9.43Mt. In July 2014, Vicem's cement output rose by 7.8% year-on-year to 1.54Mt, while clinker output rose to 1.47Mt, a 8.1% rise.
In the first seven months of 2014, Vicem's total clinker and cement sales rose by 7% year-on-year to 12.7Mt, including 1.88Mt in July 2014, a 3.9% fall year-on-year. Of the total, 10.6Mt of cement and clinker were sold in Vietnam, down by 7.7% year-on-year. 2.12Mt were exported, an 86% rise year-on-year.
Vietnam: Larger cement producers in Vietnam have failed to build government mandated waste heat recovery (WHR) systems. Under Vietnam's cement industry development plan until 2020 with a vision towards 2030, all cement plants with a clinker production capacity of 2500t/day or above have to implement a WHR system to save at least 20% of their electricity consumption by 2015. However, local media has reported that only Holcim and Ha Tien 2 have invested in the technology. Other cement producers have been prevented from investing in their plants by high debt and poor local demand for cement.
Nguyen Quang Cung, chairman of the Vietnam Cement Association admitted to the delayed investment in the WHR systems. "However, there won't be an extension. The cement makers will be forced to implement this on time," said Quang Cung.
Nguyen Cong Minh Bao, director of Sustainable Development of Holcim Vietnam, which invested US$18m in a WHR system in 2012, said that Vietnam should not extend the deadline. According to Bao 60% of Chinese firms apply the system in China and WHR is an intrinsic component of any new project.
Holcim Vietnam's WHR system has an output capacity of 44MkWh/yr. It will be enough to serve the firm's Hon Chong Cement Factory for 88 days of operation, meaning Holcim Vietnam will save 9000t of coal and reduce 25,300t of CO2 per year.
Vietnam's cement sector is considered as one of the country's most energy-intensive industries. Under the third draft of the retail pricing scheme conducted by the state-run Electricity of Vietnam in 2013, steel and cement producers using power voltages of 110kV or higher during peak hour would pay 10% than the asking price for their normal power. Overall, the draft would dish out a power tariff hike of 2 - 16% to steel and cement producers.
Vicem sold 1.77Mt of cement and clinker in October 2013
11 November 2013Vietnam: State-owned Vietnam Cement Industry Corporation (Vicem) has sold 1.77Mt of cement and clinker in October 2013, a year-on-year increase of 5%.
1.47Mt of cement and clinker was sold in the domestic market, a year-on-year reduction of 8.3%, while 0.31Mt was exported, a 243.8% increase when compared with October 2012.
The Vietnamese company produced 1.34Mt of clinker and 1.32Mt of cement in October 2013, down by 5.9% and 7.1% respectively compared with October 2012.
During the first 10 months of 2013 Vicem's cement and clinker sales reached 17.7Mt, a 9.2% increase on the same period of 2012. 15.8Mt was sold in the domestic market and 1.8Mt was exported, representing increases of 4.8% and 74.2% compared with the same period in 2012. During the first 10 months of 2013, Vicem's cement output rose by 9.3% year-on-year to 12.39Mt.
Vicem projects that its cement and clinker sales will reach 1.91Mt in November 2013, and aims to produce 1.39Mt of clinker and 1.63Mt of cement in the same period.
Vietnamese industry sending mixed messages
25 July 2012Vietnam: The state-run Vietnam Cement Industry Corporation (VICEM) has announced that it made a pre-tax profit of US$15.9m in the first half of 2012, a 73% year-on-year rise compared to the first half of 2011 and 44% of its whole-year target. Howver, its revenues fell by 1.2% year-on-year to US$682m during the same period.
Vicem reports that it sold 9.71Mt of cement and clinker in the first half of 2012, a 1.4% drop compared to the same period of 2011. Of the total 0.65Mt was exported, a 1.5% increase. Vicem produced 7.45Mt/yr of cement and 7.08Mt/yr of clinker between January and June 2012.
Meanwhile, a city authority has called a halt to the construction of a new cement plant amid continued overcapacity in Vietnam. Kinh Bac City Development Share Holding Corp (KBC) has received approval from authorities from the central province of Nghe An to withdraw from a cement plant project worth of hundreds of millions of US Dollars.
Construction of the Saigon-Tan Ky plant, which was planned to have a designed capacity of 5Mt/yr, was started on 19 May 2010 and it was expected to be developed in two phases. The production capacity for the first phase was projected to be 2500t/day (0.95Mt/yr). Investment for the first phase was proposed at US$71.8m. Local media has reported that the support structures for the three kiln plant have not yet been completed.
Vietnam had around 2.8Mt of cement in inventories by the end of June 2012 but the figure is expected to rise to as much as 6Mt by the end of the year. Local media reports that the overcapacity has been brought about through the 'unplanned construction of cement plants' in recent years.
Vietnam: Vietnam's Ministry of Construction has proposed the creation of an association for cement and clinker exporters to curb 'unhealthy' competition among them. The proposal has been sent to the prime minister for approval.
In its proposal the ministry said that Vietnam's cement and clinker exports have been 'badly affected' because some companies cut export prices to 'unfairly' compete with the rest. At present Vietnam has eight cement and clinker exporters. Six, Vicem, Ha Long, Thang Long, Cam Pha, The Vissai and Cong Thanh, are domestic. The remaining two, Chinfon and Phuc Son, are joint venture companies.
The ministry has called on local cement companies to cooperate rather than undercut each other in order to liquidate their large inventories through exports. The inventories are the biggest challenge facing the industry, it said. Exporting is considered a temporary measure to deal with the rising inventories which were caused by frozen real estate market and unplanned construction of cement factories nationwide.
Vietnam held around 2.8Mt of cement in inventories at the end of June 2012. The figure is expected to rise to 6Mt by the end of 2012, an increase of 23% on year-on-year.