08:17 | 30/03/2015 Trade
(VEN) - To increase domestic sales and promote exports, cement businesses need to focus investment on technological innovation to improve their competitiveness.
The latest statistics from the Building Materials Department under the Ministry of Construction show that cement production and sales have considerably increased. In January 2015, cement sales reached 5.87 million tonnes, equal to 95 percent of the same index in December 2014 but up 30 percent compared with January 2014. Notably, domestic sales increased compared with both December and January 2014, and exports reached 1.5 million tonnes.
In January 2015, the Vietnam Cement Industry Corporation (VICEM) sold 1.41 million tonnes of cement, a rise of 46 percent compared with January 2014.
Hoang Xuan Vinh, General Director of the Cam Pha Cement Company, said that the company expected its sales in 2015 would remain equal to 2014’s result but it would concentrate on promoting domestic sales to increase the index by about 24 percent; revenue to reach VND2.6 trillion and profits of VND183 billion. The company will produce bulk cement (PC50), slag cement, and sulfate resistant cement. The company first began producing PC50 cement in November 2014, while the other two varieties will be launched in the third quarter of this year.
Building Materials Department Director Le Van Toi predicted that the domestic cement sector would thrive as the government continued to prioritize investment in major infrastructure projects, the consumer demand for construction materials was rising and the real estate market proved to warm up.
The prime minister-approved plan for developing the cement industry in the 2020-2030 period indicates that cement businesses need to promote technological innovation to improve competitiveness. Under this plan, the cement sector will develop in the direction of industrialization and modernization by applying advanced technologies to create quality products meeting market demand, save fuels, reduce energy consumption, and protect the environment. The plan also indicates a roadmap for the step-by-step elimination of outdated technologies to reduce production costs and improve product quality.
To strengthen its position as a leading cement business in southern Vietnam, in 2015, the Building Materials Corporation No. 1 (FiCO) has built an ISO 9001:2008 quality management system and a laboratory meeting TCVN 17025:2005 standard (Vilas 270). Meeting TCVN 6260:2009 standard, FiCO-branded PCB40 cement products are of stable quality and sold at competitive prices. FiCO General Director Nguyen Quang Trung said, “From 2016-2020, FiCO will invest about VND3.2 trillion in a new clinker production line with design capacity of 1.24 million tonnes and a cement grinding mill with capacity of 1.6 million tonnes. This project is expected to be completed in mid-2018.”
Another cement business, VICEM Hoang Thach, has successfully applied new technology to reduce energy consumption. Its third kiln can run continuously for 336 days, exceeding its design capacity (normally, each kiln can run at its full capacity for 250-325 consecutive days).
VICEM Hoang Thach General Director Dao Ngoc Binh said that the company was concentrating on training international standard human resources and promoting creativity to innovate production, improve product quality and reduce expenses.
New cement plants to be built in 2015 must have minimum capacity of 2,500 tonnes of clinker per day according to government requirements.
By Lan Anh