Thursday, December 8 2016

VietNamNews

Cement exported to S Africa

Update: March, 04/2016 - 08:28

Representatives of Xuan Thanh Cement JSC and Ores & Minerals UK Ltd inks a contract to export cement to South Africa in Ha Noi on March 2. — Photo baodautu.vn

HA NOI (VNS) — Xuan Thanh Cement Joint Stock Company, a member of Xuan Thanh Group, will export 20 million tonnes of cement to South Africa over the next 10 years, under an agreement in Ha Noi on Wednesday.

The agreement was signed with its United Kingdom partner.

As the company contracted with Ores&Minerals UK Ltd, the export deal is worth US$1.2 billion and all shipments will be insured by Xuan Thanh Insurance Joint Stock Corporation.

Xuan Thanh Cement General Director Nguyen Xuan Thuy told Dau tu (Viet Nam Investment Review) that his firm currently exports cement to Australia, Papua New Guinea, the Philippines, Bangladesh and Chile.

The firm has rapidly enhanced production capacity at its facilities in northern Ha Nam Province and central Quang Nam Province, and will do the same in southern Binh Phuoc Province in the future.

Xuan Thanh Group, which runs both cement and insurance companies, is preparing procedures to invest in the Kaito Ha Tien cement factory in Binh Phuoc's Hon Quang District, about 90km away from HCM City.

The group plans to pour more than VND12 trillion ($533.3 million) into Kaito Ha Tien, which was formerly named Minh Tam with an investment capital of roughly VND4 trillion.

Mien Dong Joint Stock Company, a construction firm listed on the HCM City Stock Exchange began construction of Minh Tam, in late 2011, and was expected to roll out its first product in late 2013.

However, Mien Dong suffered business losses and failed to assure progress of the project. It then transferred the plant to the ThaiGroup.

In a broader context, the Ministry of Construction reported that cement businesses in Viet Nam sold 9.4 million tonnes of cement in the first two months of this year, an increase of 6 per cent over the same period last year.

In February alone, the cement export volume rose by 7 per cent month-on-month at 0.75 million tonnes, compensating for a fall in domestic sales.

The quantity of cement sold domestically in February reached 2.27 million tonnes, less than half of January's volume, as a result of a lengthening Lunar New Year holiday.

Industry insiders said cement consumption is expected to improve in the coming months following rallies in the real estate market, and this will support the sector's goal of selling 75 million tonnes to 77 million tonnes of cement this year. — VNS

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