Cement plants gearing up to meet demand
Le Van Chung, Director General of the Vietnam Cement Corporation (VCC), has urged operational cement plants to run at full capacity and raise furnace productivity by 10% in order to raise total cement output.
The demand for construction has been increasing sharply over the last few years, leading to the increased demand for construction materials in general and cement in particular.
Cement prices are skyrocketing as Vietnam has entered the construction season. Ha Tien 1 cement is priced at VND950,000 ($59.375) per tonne, not including transport, up by VND20,000 per tonne. Holcim is selling at VND925,000 ($57.81) per tonne, or VND15,000 higher than the previous level.
The Ministry of Construction (MoC) has predicted that Vietnam will need 3.2 – 3.4mil tonnes of cement in May and June. The inventory cement and clinker volume is 1.25mil tonnes.
In 2005, Vietnam ranked the third among ASEAN members in cement consumption after Thailand and Indonesia. However, Vietnam just ranks the fourth in terms of capacity, at 19mil tonnes for clinker and 29mil tonnes for cement.
Mr Chung said that the demand for cement is expected to rise by 8-10% per year by 2010.
VCC plans to expand existing cement plants in order to satisfy the domestic demand, while it can economise the investment capital and take back the capital quickly. Hoang Thach 3 and But Son 2 plants will be expanded, while new production chains will be installed at Bim Son, Binh Phuoc, Ha Tien 2, and four clinker grinding workshops in the central region and the south will be put into operation.
MoC has requested VCC to accelerate the process of building the cement plants to reach 50mil tonnes by 2010, when Vietnam hopes to wean itself off clinker imports.
Producers also hope to export in the future.
