Quang Nam refuses another Chinese investor for Chu Lai Soda

Chinese investor refused to take over notorious Chu Lai Soda

This was announced by Deputy Chairman of the Quang Nam People’s Committee Huynh Khanh Toan. Toan affirmed to local media that the province will take control of Chu Lai Soda in order to prevent it from selling the factory to another Chinese investor.

The soda manufacturing plant has gained notoriety after repeated violations and pollution incidents since it came into pilot operation in June 2015. It was even temporarily closed from August 2016 due to its relapses and delays in paying the fines.

The problem is that the factory’s closing left the massive debts unpaid. A total of VND3.34 trillion payables, including debts from state-owned Bank for Agriculture and Rural Development (Agribank) and other banks, value-added tax, salary for employees, and land-renting fees were left hanging.

Agribank provided a loan worth over VND2 trillion to Chu Lai Soda to develop the project. However, after the environmental incidents, this sum became a bad debt for Agribank.

According to the Quang Nam People’s Committee’s report to the prime minister, Chu Lai Soda increased co-operation with banks to find a way to resume the plant’s operation as soon as possible.

The representatives of Chu Lai Soda and banks to which Chu Lai Soda owes money arrived to China to join a working session with China Tianchen Engineering Corporation (TCC) to discuss plans to solve environmental issues at the factory. Besides, Chu Lai Soda and Agribank worked with another Chinese soda manufacturer to resume the factory’s operation with a higher capacity.

Toan said that the province is waiting for the assignment from the prime minister.

Previously, in the report submitted to the prime minister, the Quang Nam People’s Committee mentioned that numerous investors, including foreign investors, intend to invest in the suspended Chu Lai Soda processing factory. However, the list of interested investors has not been disclosed.