Vietnamese tissue paper maker Hapaco (HAP) said on Friday it would begin building a 20,000-bpd oil refinery in the northern port city of Haiphong at the end of this year.
In January the firm said it had secured a deal to borrow $128 million from Sachsen LB bank of Germany to finance a $150-million oil refinery project which is slated to be operational by 2010.
"A management team has been formed to organise construction of the plant by the end of 2007," Hapaco said in a statement published by the Ho Chi Minh Stock Exchange.
Many foreign and local companies have sought to build refineries with investments of under $500 million but none of the projects have materialised so far because of the lack of access to crude oil controlled by state oil group Petrovietnam.
Petrovietnam began building the country's first 130,000-bpd refinery in 2005 and aims to complete the plant by early 2009.
Haiphong-based Hapaco also said in the statement its first half net profit more than tripled to 25 billion dong ($1.55 million), exceeding its target for the whole year of 22 billion dong thanks to expanded production at its new pulp plant.
The firm also said exports -- mainly joss-paper used widely in Taiwan and China for offerings -- during the first six months jumped 37.5 percent from a year earlier to $5.5 million.
It did not provide revenue figures for the first half but said revenue during the period jumped 24.3 percent from a year ago.
Hapaco's stock closed at 86,000 dong ($5.3) on the Ho Chi Minh Stock Exchange on Friday, up 4.88 percent from Thursday.
Source: Reuters
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