New production model offers multiple benefits

09:53 | 01/07/2013 Industry

(VEN) - In addition to significant economic benefits, the technical demonstration model of casting mechanical products with a medium frequency electric furnace system is expected to be one of the effective solutions to help villagers in the traditional copper plating village of Dong Coi in Nam Giang Town, Nam Truc District, Nam Dinh Province, overcome pollution.

The technical demonstration model for casting mechanical products with medium frequency electric furnace system was developed by the Industrial Promotion and Consultancy Center 1 (IPC1) in collaboration with the Nam Truc One-Member Company Ltd., and Dong Coi Industrial Complex. The model requires a total investment of VND8.691 billion, including VND250 million funded from the 2013 national budget via IPC1, 225.8 million of which was disbursed to cover the procurement of machinery and equipment; VND16.7 million to cover the cost of organizing a workshop introducing the model; and VND7.5 million to cover the cost of project management.

According to the model, the casting process starts with grading metal scrap as raw material and then graded scrap is put into the medium frequency electric furnace system to cast. The cast components will be sent to a BTP shop to be assembled into finished products. Products fabricated by the model include steel shafts, gears, trolley wheels, and pulleys used in agricultural and coal mining machinery.

According to representative of Nam Truc One-Member Company Ltd., as the model uses new production technology, the products are created with 300-500 percent higher precision rate compared to previously; meanwhile, productivity is also 200 percent higher. The new model helps reduce wastage of raw materials and production costs significantly. Market research results show that the demand for products fabricated by the model should be relatively stable in the coming years. Therefore, as the model is applied to broad production, it should prove profitable.

By a rough reckoning, the company may reach 300 tonnes of products at annual full capacity, generating VND1.783 billion in average gross profit, VND1.337 billion in net profit; and it may take a six and a half year payback period.

The benefits of the technical demonstration model are obvious. However, according to IPC1, the model is also significant in terms of social welfare as it can create jobs for hundreds of workers in rural areas with monthly income per capita ranging from VND2.5-3.5 million.

The model is also expected to be one of the effective and long-term solutions contributing to reducing environmental pollution at the copper plating village of Dong Coi where villagers generally used coal for molding, causing serious air pollution and discharging waste directly into the environment. The replacement of coal-burned foundry system with medium frequency electricity furnace system will almost completely eliminate harmful gas emissions, solid waste, and the chemical additives used in the casting process.

Seeing the positive economic, social, and environmental effects that the model will bring manufacturers, the Ministry of Industry and Trade’s Agency for Industrial Promotion has asked IPC1 and the Nam Truc One-Member Company Ltd. to actively and rapidly develop and apply the model./.

By Bui Viet