Displaying items by tag: VICEM

Vietnam: State-owned Vietnam Cement Industry Corporation (VICEM), the country’s leading cement producer, produced 18.74Mt of cement and 15.63Mt of clinker in the first nine months of 2019, increases of 8% and 4% year-on-year respectively, according to the Dau Tu (Investment) newspaper.

During the period, VICEM sold 21.82Mt of cement and clinker, a 3% year-on-year rise. The sum included 18.83Mt of cement, a 7% year-on-year increase. Over the same period, VICEM’s pre-tax profit rose by 35% year-on-year to US$90.52m, including US$58.16m from its cement subsidiaries, a 20% year-on-year increase.

In 2018, VICEM produced a total of 20.4Mt of clinker and 25Mt of cement. In 2019 it aims to produce and sell 31Mt of cement and clinker, including 26.8Mt of cement, a targeted increase of 10% year-on-year.

Vietnam: Vietnam Cement Industry Corporation’s (VICEM) cement production grew by 11% year-on-year to 12.8Mt in the first half of 2019. Its clinker production rose by 2% to 10.2Mt. It cement and clinker sales volumes increased by 3% to 14.7Mt, according to the Viet Nam News newspaper. The state-owned cement producer intends to produce and sell 27Mt of cement in 2019, up from 25Mt in 2018.

Vietnam: Vicem Hoang Mai plans to build a 3Mt/yr cement plant in Nghe An province with an investment of US$286m. The unit will be built in the province’s Hoang Mai 2 Industrial Zone, according to the Vietnam Economic News newspaper. The project was approved in principle by the Provincial People's Committee in May 2019. It is part of the country’s cement industry development plan in 2030.

Vietnam: Cement producers including Vissai Cement and the Vietnam Cement Industry Corporation (VICEM) have reported difficulties in buying coal domestically. Hoang Manh Truong, the chairman of Vissai Cement, said that the company mostly used imported coal in 2018 and this experience has been mirrored by VICEM, according to the Viet Nam News newspaper. The situation has been blamed on a sharp rise in local demand due to new cement plants and no new coal mines.

Vietnam: A 8.36% rise in electricity prices in late March 2019 is set to cause an increase in the price of cement. The Vietnam Cement Industry Corporation (VICEM) said that cement producers had also been hit by an increase in coal prices, according to the Vietnam News Agency. The rise in the price of coal follows a lack of supply from the Vietnam National Coal and Minerals Industry Holding Group (VINACOMIN) leading to producers to import coal. Cong Thanh Cement has not raise its retail prices but has charged distributors more. Nguyen Quang Cung, chairman of the Vietnam Cement Association, said that producers were not surprised by increase in electricity prices and had been preparing for it.

Vietnam: The Vietnamese Prime Minister Nguyen Xuan Phuc has asked the Ministry of Construction and VICEM to report on the country’s excess cement capacity, which is set to reach 25-36Mt/yr by 2020.

The latest statistics from the Ministry of Construction’s Building Material Department show that cement consumption was approximately 45Mt in the first half of 2018, a rise of 30% year-on-year compared to the same period of 2017, and more than 50% of the year’s plan.

The sector’s capacity is 110Mt/yr, including the volume from plants expected to be built in 2018. Aside from that, existing plants have kept improving technology so their production capacity might reach 120-130Mt/yr by 2020.

Three large projects with the total capacity of 10Mt/yr were put into operation in the past 12 months. In 2019 many more projects are expected to come into operation, with a total new capacity of 12Mt/yr coming online.

Vietnam: The Ministry of Construction has opposed the Ministry of Industry and Trade’s proposal to transfer the Quang Son cement plant from Vietnam Industrial Construction Corporation (Vinaincon) to Vietnam Cement Industry Corporation (Vicem) on the grounds of the plant’s losses and debts. Both Vinaincon and Vicem are government owned, according to the Viet Nam News newspaper.

Luong Quang Khai, chairman of Vicem’s board of members, said that the Quang Son cement plant is located in a poor position for transport logistics, which has led to high production costs. The plant has also suffered from losses while its loans have grown to equal 95% of the plant’s total investment. Khai also noted that the potential new owner Vicem has undergone financial difficulties following its acquisition of the Ha Long and Song Thao cement plants.

Previously, the Ministry of Industry and Trade suggested that the government transfer the Quang Son cement plant to Vicem from Vinaincon. Under the proposal, Vicem would back the loans taken out by Vinaincon for the Quang Son cement plant. Formerly known as the Thai Nguyen cement plant, Quang Son started commercial operation in July 2011 with a cement production capacity of 1.5Mt/yr.

Vietnam: The Vietnam Cement Industry Corporation (Vicem) exported the majority of its cement sales in the first half of 2018. The government-owned cement producer’s sales rose by 10.1% to 14.2Mt, according to the Viet Nam News newspaper. However, 11.7Mt of this figure was exported. The company’s cement and clinker production rose by 8.5% to 10.2Mt and 6.4% to 11.6Mt respectively.

Vietnam: Tran Viet Thang, the former General Director of the Vietnam Cement Industry Corporation (Vicem), has been dismissed as a member of the Executive Committee of the Central Businesses Party Unit and member of the Executive Committee of Vicem's Party unit. He has been found guilty of several legal violations as well as breaking Communist Party of Vietnam rules, according to the Viet Nam News newspaper.

Thang was appointed as the head of government-owned Vicem in mid-2013. He is accused of raising company debts of US$175m by the end of 2016. He left the position in mid-2017. According to the Secretariat of the Communist Party of Vietnam, Thang signed documents and took decisions that he was not authorised to. His actions allegedly violated local corporate and bidding law, as well as rules for Communist Party members. He has been accused of damaging the reputation of Vicem and the Communist Party.

The punishment against Thang is part of an on-going crackdown in the country against corruption.

Vietnam: The Ministry of Industry and Trade has proposed that the government transfers the management of Quang Son cement plant to the Vietnam Cement Industry Corporation (Vicem) from the Vietnam Industrial Construction Corporation (Vinaincon) due to high losses and mounting loans. Both companies are run by the government, according to the Viet Nam News newspaper. The loans have grown to 95% of the total investment of US$153m of the project, putting financial pressure on Vinaincon.

Under the proposal, Vicem will have to take care of all the loans taken by Vinaincon for Quang Son cement plant, formerly known as Thai Nguyen cement plant. The project started commercial operation in July 2011 with a production capacity of 1.5Mt/yr of cement.