Duc Giang Chemical to develop $521 million project in Thanh Hoa
16:23 | 27/03/2020 Print Article
Duc Giang Chemical Group JSC, the producer of Duc Giang washing powder, plans to develop the Duc Giang-Nghi Son chemical complex in Tinh Gia district, Thanh Hoa province with the total investment capital of VND12 trillion ($521.74 million).
|Duc Giang Chemical will develop the project in Thanh Hoa by 2026 |
This complex is the largest investment of Duc Giang Chemical so far. To begin the project, the group will rent 80 hectares of land for 50 years sometime between April and September.
The construction will be divided into three phases. The first phase has a total investment capital of VND2 trillion ($86.96 million), VND600 billion ($26.1 million) of which comes from company equity and the remaining VND1.4 trillion ($60.87 million) from loans.
The first phase is expected to start operation in June 2022 and will manufacture sodium hydroxide (98 per cent), calcium hypochlorite (70 per cent), and Chloramine B, among others.
Having a total investment cost of VND7 trillion ($304.35 million), the construction of the second phase will last from 2022 to 2024 and will include a facility specialising in manufacturing PVC plastic and soda with the capacity of 150,000 tonnes of PVC and 100,000 tonnes of caustic soda per year.
The third facility, which is worth VND3 trillion ($130.43 million), is expected to start operation in 2026 after two years of construction and will operate with the capacity of 400,000 tonnes of sodium carbonate a year.
In addition, Duc Giang Chemical plans to spend VND210 billion ($9.13 million) on an apatite ore mine in Lao Cai province. The investor expects to exploit this mine for six years with the total revenue of VND900 billion ($39.13 million) and profit of VND300 billion ($13 million). The project is expected to come into operation in March 2021.
Duc Giang Chemical is a state-owned enterprise established in 1963 and specialises in washing powder production.
The company was equitised in 2004. It filed for listing on the Hanoi Stock Exchange (HNX) in early November 2019 with more than 129 million shares. It plans to switch from HNX to the Ho Chi Minh City Stock Exchange (HSX) this year.
This year, the firm targets to acquire VND600 billion ($26.1 million) in after-tax profit, up 6 per cent on-year.
In last December, Vietnam National Chemical Group (Vinachem) registered to auction all 11.45 million of its shares in the firm, equivalent to 8.85 per cent of its capital. The shares was offered at a starting price of VND49,100 ($2.13), nearly double the current market price of VND27,000 ($1.17).