PVFCCo steps into herbicides

January 05, 2011 | 14:30

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PetroVietnam Fertiliser and Chemicals Corporation has expanded its product portfolio to herbicide products after shaking hand with Vietnam Pesticide Joint Stock Company.

The two sides have signed a memorandum of understanding on cooperation on building a glyphosate herbicide factory with initial capacity of 20,000 tonnes per year.

The two sides will execute the memorandum by forming a dedicated steering committee to do survey, market assessment, project composing and project feasibility assessment.

Once the feasibility was measured, PetroVietnam Fertiliser and Chemicals Corporation (PVFCCo) will contribute no less than 64 per cent of the needed investment capital for the project. PVFCCo and Vietnam Pesticide Joint Stock Company, meanwhile, will have the right to call for potential partners for the project.

Glyphosate herbicide has been used by local farmers and demand for this product is around 9,000 tonnes per year, all of which is imported.

PVFCCo is now the leading urea fertiliser producer in Vietnam and the glyphosate herbicide production will expand its product portfolio.

PVFCCo reportedly on December 1, last year that the total output of company was 740,000 tonnes of urea fertiliser, matching a month ahead its full-year plan of the company.

PVFCCo met its full year target for its revenue of VND5.7 trillion ($285 million) by the end of November. The pre-tax profit was estimated around VND1.6 trillion ($80 million), an increase of 59 per cent against its set target for this year.

By Hoang Giap

vir.com.vn

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