PVFCCo and Japan’s Sojitz ink memorandum

photo Ninh Kieu

Accordingly, JVF will provide PVFCCo with 30,000-40,000 tonnes per year of high quality NPK fertiliser for pre-marketing activities. In return, PVFCCo is expected to supply Sojitz with 200,000-300,000 tonnes/year of urea for its exporting to Thailand, Philippines, and other countries with the condition that the supply of any kind of Urea from PVFCCo for domestic market will be given priority.

The provision is performed through commercial contracts, which are planned to be negotiated and finalised right after the memorandum comes into effect 15 days later. The memorandum has a life-span of two years.

In addition, parties are also considering the possibility of providing technical assistance service, on contract basis, with PVFCCo in operation and maintenance of its new NPK plant by utilising its partner, Glass Co., Ltd., Japan, an international reputable NPK producer.

If this cooperative agreement is visualised, PVFCCo will extend its product portfolio to other fertiliser products beside urea and prepare its pre-marketing for its own NPK products, which are tentatively launched in 2014. On the other side, through cooperation with PVFCCo, Sojitz and JVF hope to increase its high quality urea supply to expand its own local and global network.

The two parties will form a team to prepare and perform cooperative activities in accordance with the memorandum after it comes into effect.

PVFCCo is the leading company in chemicals and fertiliser sector in Vietnam with its annual production capacity of 800,000 tonnes of urea per year, supplying over 40 per cent of domestic fertiliser demand. The firm plans to kick off a $63 million NPK plant in Ba Ria-Vung Tau province in the next few months. The plant is to be located next to the Phu My fertiliser plant and has a designed capacity of 400,000 tonnes per year.

JVF is a joint venture company between Sojitz Corporation and a Vietnam partner producing high quality of NPK. Sojitz holds 75 per cent stakes in JVF. Sojitz was established in 2004 through business integration between Nichimen and Nissho Iwai.