|Further, 6.5 million tones of cement was used in July, according to the Ministry of Construction. — File Photo
HA NOI (VNS) — The domestic cement industry saw year-on-year growth of 10 per cent in consumption of cement and clinker to 40.98 million tones in the first seven months of this year.
Further, 6.5 million tones of cement was used in July, according to the Ministry of Construction.
Le Van Toi, head of the ministry's Building Material Department, said the growth in the use of cement was due to higher demand in technical infrastructure construction projects, including transport, hydro-power and social housing construction.
Moreover, new demand in the local real estate market has caused a growth in the use of cement.
Meanwhile, exports of cement also reached a year-on-year rise of 13 per cent to 9.77 million in the first seven months of this year, including 1.35 million in July.
According to the ministry, the price of input material for production has increased continuously, though the selling price of cement has stabilised.
The ministry also said the local cement industry has seen one trend of expanding production in large cement enterprises, while supplying cement to a second trend found in restructuring small cement enterprises.
For instance, Quang Ninh Cement and Construction Joint Stock Company temporarily stopped production at its Lam Thach Cement Factory on August 1 as it restructures its cement manufacturing.
Also, Tien Son Ha Tay Cement Joint Stock Company was removed from the local stock exchange in mid-June due to their long-term losses. For three years, from 2012 to 2014, it recorded continuing losses, though local demand for cement had recovered. In 2014, for instance, the company took in total revenues of VND37.7 billion, while losing VND7.6 billion.
Meanwhile, the ThaiGroup Joint Stock Company (formerly Xuan Thanh Group) has received credit to develop the Xuan Thanh Cement project, with a total capacity of 4.5 million tonnes per year, at an expected cost of VND11 trillion. Three banks have provided loans for the projects, including BIDV, Agribank and Military Bank.
Additionally, the ThaiGroup has purchased the Minh Tam Cement Factory project with an annual capacity of 2 million tonnes in Binh Phuoc Province from the South Joint Stock Company.— VNS