Today, locally-owned TH Group has officially put into operation the first stage, worth $100 million, of its wood processing plant in the central province of Nghe An.
Managed by May Forestry Joint Stock Company, the state-of-the-art plant, whose investment consultant is the BAC A BANK began construction in February 2013.
Also including programmes on sustainable development of forests in Nghe An, the plant includes two facilities. The first facility is used for making barred wood with an annual capacity of 12,000 cubic metres. Meanwhile, the second facility is aimed to process medium density fibreboard (MDF), which is a reconstituted wood panel product, with an annual capacity of 130,000m3.
The plant’s second stage will have a total investment capital of $200 million, which will raise the barred wood processing facility’s total annual capacity to 40,000m3 and that of the MDF processing facility to 400,000m3.
It is estimated that the plant will annually produce a post-tax profit of $7-8 million and contribute about $2 million to the coffers of Nghe An.
The automatically-monitored plant uses modern technologies imported from Germany, with products to be locally marketed and exported. Notably, the products meet all strict standards of the US, the EU and Japan in terms of environmental protection as it largely uses solar energy for operation.
At present, May Forestry Joint Stock Company has completed the inking of contracts with localities and suppliers for material sources, and sustainable development of forests.
The company has also been co-operating with forest firms, co-operatives and households for forest plantation.
The inauguration ceremony was attended by many leaders of the government and Nghe An.