Vissai Group cements its future

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Northern Ninh Binh province-based Vissai Group recently acquired Hoa Phat Group’s Hoa Phat cement plant which has an annual production capacity of 1.2 million tonnes to raise its total output to 6.2 million tonnes per year.

To turn itself into a leading cement producer, Vissai Group would balance its finance and further acquire operating plants to hike its production, according to the group’s deputy general director Nguyen Vu Thanh.

Thanh said the buyout of good operating factories was part of the group’s business strategy.

Vissai Group later renamed Ha Nam province’s Hoa Phat cement plant Vissai 3 Cement Joint Stock Company. It concurrently kicked-off construction of another Ha Nam province cement plant with  total investment of around VND1.5 trillion ($72.46 million) in the first phase.

The cement plant, with an annual capacity of one million tonnes, will make trial run in the first quarter of 2012 and will be the group’s fourth cement plant in the north.

In its future development plan, Vissai will expand and boost production of its existing plants and build some new ones, ensuring that its all plants enjoy cutting-edge and environmentally-friendly technology and equipment.

The Ninh Binh-based group is also set to open some more clinker grinding plants, receive and distribute cement along central and southern coastal areas and diversify cement production to include PCB 30 and PCB 40 cement brands while producing PC50 brand based on orders.

In the face of sliding cement consumption in the domestic market, Vissai’s sales volume fell 20 per cent in the first nine months of 2011 against the same period of 2010, said Thanh.

“However, we have stable export orders to Bangladesh, Singapore and the EU, so sales figures remain encouraging,” said Thanh.

The Vissai Group currently has five cement plants under management as follows:

- Production lines 1 and 2 at Vissai Ninh Binh plants: 3.2 million tonnes per year

- Vissai Ha Nam: one million tonnes per year

- Vissai 3: one million tonnes per year

- Vissai central region: one million tonnes per year

- Vissai southern region: two million tonnes per year.