Viglacera signs MoU with Cuban construction giant

October 23, 2014 | 13:00

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Construction material producer Viglacera Corporation has signed a memorandum of understanding with Cuba’s El Grupo Empresarial Industrial de la Construccion (Geicon) to set up a joint venture that will invest in two factories making bathroom fixtures and tiles in San Jose and Santa Cruz.

Accordingly, Viglacera and Geicon are going to jointly invest in the two factories and Viglacera is sending specialists to work there. The two sides plan to complete administrative procedures for setting up the joint venture next year and plan to start operations in 2016.

The Cuban market has a high demand for construction materials as the country is encouraging investment in housing and tourism infrastructure. Since early 2014 Viglacera has sent two groups of technology specialists to work with construction material factories in Cuba.

According to Nguyen Anh Tuan, Viglacera’s general director, the company’s products are now present in many countries around the world and its co-operation with The Business Industrial Construction Group (GEICON) will help it deepen its presence in the Cuban market and consequently raise its export revenue.

GEICON, under the Cuban Ministry of Construction, is comprised of 24 companies throughout the country with a combined workforce of 16,000 people and annual sales of more than 220 million pesos ($8.3 million).

Viglacera, which focuses on producing and selling construction material and developing industrial parks, infrastructure and real estate, reported $25 million in export earnings in 2013 and plans to increase this figure to $31.5 million this year. Viglacera has set a pre-tax profit target of VND270 billion ($12.67 million) for 2014.

By By Hai Yen

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