Two and a half million shares of the Song Da No 6.06 Joint Stock Company were officially listed on the Hanoi Securities Trading Centre under the symbol SSS on August 28, bringing the total companies listed on the centre to 89.
On its first trading session, 10,200 SSS shares were traded at an average price of VND 50.700 a share.
The company is the 20th member of the Song Da Corporation listed on the northern bourse.
Song Da 6 Construction Company’s affiliate in Thua Thien- Hue, the precursor of Song Da No 6.06 JSC, was established in 1999. In 2002, the affiliate was shifted to Song Da 6.06 Enterprise under the Song Da 6 Company. Since January 2004, it has officially operated as a joint stock company with a registered capital of VND 5 billion.
After three years of operation, the company achieves an annual average growth of 30% with the charter capital increasing five fold to VND 25 billion in 2007, affirming its prestige in the central Thua Thien-Hue province as well as the central region and the Central Highlands.
Song Da 6 JSC currently holds 50% stake in Song Da No 6.06 JSC; 28.74% others belong to outside shareholders and the remaining are owned by the company’s employees.
The company specialises in providing assembling products and industrial production products such as concrete and concrete execution, exploiting limestone for cement companies, cement trading, etc.
Last year, the company’s total revenue stood at over VND 79 billion with an after tax profit of VND 4.7 billion and a 20% dividend. This year, Song Da No 6.06 JSC targets a total revenue of VND 116 billion with a net profit of nearly VND 8 billion and 19% dividend.
Source: VNE
Showing posts with label Cement. Show all posts
Showing posts with label Cement. Show all posts
Wednesday, August 29, 2007
Wednesday, July 04, 2007
Solid growth cements profits of $21 million
Solid growth for Viet Nam Cement Corporation (VNCC) has resulted in profits of VND342 billion (US$21 million).
VNCC produced 7.05 million tonnes of cement in the first two quarters and achieved 49 per cent of the company’s 2007 target. These impressive results have been achieved despite the increasing cost of oil, gas, plaster and transport.
In the last two quarters, VNCC plans to produce 14.2 million tonnes of cement to meet market demands. By modernising its internal structure, VNCC is paving the way for future strength.
Transforming the company’s distribution system is reported to be the biggest change within the organisation during the last six months.
In an attempt to save management costs and increase the company’s competitiveness, VNCC changed from commissioning agent into the purchaser-distributor for the four production companies in northern provinces.
The corporation contributes VND270 billion ($16.8 million) to the State Budget.
VNCC has actively guided its members in developing their production, financial management and cost-saving capabilities.
The corporation plans to complete the equitisation of three member companies which are the Ha Tien 2 Cement Company, Hoang Mai Cement Company and Hai Van Cement Company by the end of this year.
Up to now, seven member companies of VNCC have been equitised, others will begin the process in 2008.
Source: VNS
VNCC produced 7.05 million tonnes of cement in the first two quarters and achieved 49 per cent of the company’s 2007 target. These impressive results have been achieved despite the increasing cost of oil, gas, plaster and transport.
In the last two quarters, VNCC plans to produce 14.2 million tonnes of cement to meet market demands. By modernising its internal structure, VNCC is paving the way for future strength.
Transforming the company’s distribution system is reported to be the biggest change within the organisation during the last six months.
In an attempt to save management costs and increase the company’s competitiveness, VNCC changed from commissioning agent into the purchaser-distributor for the four production companies in northern provinces.
The corporation contributes VND270 billion ($16.8 million) to the State Budget.
VNCC has actively guided its members in developing their production, financial management and cost-saving capabilities.
The corporation plans to complete the equitisation of three member companies which are the Ha Tien 2 Cement Company, Hoang Mai Cement Company and Hai Van Cement Company by the end of this year.
Up to now, seven member companies of VNCC have been equitised, others will begin the process in 2008.
Source: VNS
Friday, June 15, 2007
Increasing exports key to easing nation's cement overcapacity
Cement producers have the capacity to produce 60 million tonnes per year, exceeding domestic demand by 12 million tonnes, according to the Viet Nam Cement Association.
Exports are the logical way to consume the surplus, said Nguyen Quang Cung, director of the Construction Ministry's Department for Construction Materials, with many Asian neighbours, including Singapore, Japan and the Republic of Korea likely to be shopping around for new sources.
However, Cung warned, the nation's cement industry needed to get its act together if it was going to take advantage of this opportunity. Currently, only 13 out of 70 cement plants nationwide were equipped with advanced technology to assure quality standards for export.
Productivity in the industry was also below that of other countries, he noted. A cement industry worker in Viet Nam produces only 5,000 tonnes a year, half that of some of the nation's more developed neighbours, Cung said.
Viet Nam's cement industry was also hampered with higher delivery costs, he said.
Promotion of Vietnamese cement in overseas export markets was also poorly coordinated, according to Cung. There was an "every man for himself" atmosphere, with each enterprise finding its own export customers. No cooperation or sharing of market information was taking place between enterprises.
Cung suggested that enterprises needed to invest in renewed facilities and more skilled human resources to ensure the quality of cement for export.
The industry need to ensure large-tonnage ships were available to deliver on export orders, and there needed to be greater cooperation between enterprises in order to develop promotional programmes.
The Prime Minister, meanwhile, has ordered the Ministry of Construction to supervise the investment projects planned for 2010-20 to avoid large cement surpluses in the future.
The Government has also ordered the ministry to stop licensing additional cement projects.
The ministry was ordered to establish a control board to monitor existing cement plants and help balance supply and demand as well as promote the export competitiveness of the domestic cement industry.
Source: VNA
Exports are the logical way to consume the surplus, said Nguyen Quang Cung, director of the Construction Ministry's Department for Construction Materials, with many Asian neighbours, including Singapore, Japan and the Republic of Korea likely to be shopping around for new sources.
However, Cung warned, the nation's cement industry needed to get its act together if it was going to take advantage of this opportunity. Currently, only 13 out of 70 cement plants nationwide were equipped with advanced technology to assure quality standards for export.
Productivity in the industry was also below that of other countries, he noted. A cement industry worker in Viet Nam produces only 5,000 tonnes a year, half that of some of the nation's more developed neighbours, Cung said.
Viet Nam's cement industry was also hampered with higher delivery costs, he said.
Promotion of Vietnamese cement in overseas export markets was also poorly coordinated, according to Cung. There was an "every man for himself" atmosphere, with each enterprise finding its own export customers. No cooperation or sharing of market information was taking place between enterprises.
Cung suggested that enterprises needed to invest in renewed facilities and more skilled human resources to ensure the quality of cement for export.
The industry need to ensure large-tonnage ships were available to deliver on export orders, and there needed to be greater cooperation between enterprises in order to develop promotional programmes.
The Prime Minister, meanwhile, has ordered the Ministry of Construction to supervise the investment projects planned for 2010-20 to avoid large cement surpluses in the future.
The Government has also ordered the ministry to stop licensing additional cement projects.
The ministry was ordered to establish a control board to monitor existing cement plants and help balance supply and demand as well as promote the export competitiveness of the domestic cement industry.
Source: VNA
Saturday, May 26, 2007
Vietnam Cement Associations presents ambitious plans
Viet Nam will become the leading cement producer in ASEAN by 2010, with a predicted output of 60 million tonnes per year, according to the Viet Nam Cement Association.
Nguyen Quang Cung, director of the Ministry of Construction's Department of Building Materials, said that 30 new cement plants were currently in progress nationwide, in addition to 17 existing plants that were in the process of expanding their capacity to reach a total of 48 million tonnes per year.
Tran Quang Tuan of Viet Nam Cement Corporation, said that the corporation had nearly completed construction of such major cement plants as the Bim Son plant, a second production facility at the But Son plant, and a third production facility at the Hoang Thach plant.
The Cement Corporation's Nguyen Van Diep said that Viet Nam would have a surplus of clinker, a major ingredient of cement, by 2009.
However, the Cement Association has warned against the development of too much capacity, noting that supply by 2010 could exceed demand by 12 million tonnes. Exports could provide a solution to redundancy, but competition with Thai and Chinese cement producers was stiff.
Most of the increased capacity was being developed in the northern region, noted Cement Association chairman Nguyen Van Thien, which could add high transportation costs of about 200,000 VND per tonne to serve markets in the south.
Thien advised investors and enterprises in the cement sector to take care in choosing locations for plants.
Meanwhile, the Ministry of Construction has asked the Prime Minister to restrict the spread of investment in cement projects for the time being, especially smaller projects.
Domestic cement consumption in April reached 3.5 million tonnes, an increase of about 900,000 tonnes over March, bringing total consumption in the first four months of this year to 11.8 million tonnes.
The Cement Corporation predicted that, in the second quarter of this year, consumption would continue climbing, with high demand driven by an upswing in construction activity.
Source: VNA
Nguyen Quang Cung, director of the Ministry of Construction's Department of Building Materials, said that 30 new cement plants were currently in progress nationwide, in addition to 17 existing plants that were in the process of expanding their capacity to reach a total of 48 million tonnes per year.
Tran Quang Tuan of Viet Nam Cement Corporation, said that the corporation had nearly completed construction of such major cement plants as the Bim Son plant, a second production facility at the But Son plant, and a third production facility at the Hoang Thach plant.
The Cement Corporation's Nguyen Van Diep said that Viet Nam would have a surplus of clinker, a major ingredient of cement, by 2009.
However, the Cement Association has warned against the development of too much capacity, noting that supply by 2010 could exceed demand by 12 million tonnes. Exports could provide a solution to redundancy, but competition with Thai and Chinese cement producers was stiff.
Most of the increased capacity was being developed in the northern region, noted Cement Association chairman Nguyen Van Thien, which could add high transportation costs of about 200,000 VND per tonne to serve markets in the south.
Thien advised investors and enterprises in the cement sector to take care in choosing locations for plants.
Meanwhile, the Ministry of Construction has asked the Prime Minister to restrict the spread of investment in cement projects for the time being, especially smaller projects.
Domestic cement consumption in April reached 3.5 million tonnes, an increase of about 900,000 tonnes over March, bringing total consumption in the first four months of this year to 11.8 million tonnes.
The Cement Corporation predicted that, in the second quarter of this year, consumption would continue climbing, with high demand driven by an upswing in construction activity.
Source: VNA
Tuesday, May 15, 2007
Construction material prices rising
Construction material producers all are planning to raise their selling prices to cover the higher input material prices.
Pham Chi Cuong, Chairman of the Vietnam Steel Association (VSA), said that the steel price keeps high, though the offered ingot steel has slightly decreased in the last couple of weeks. Explaining this, Mr Cuong said that steel mills now still use the ingot steel imported at high prices in the first quarter of the year.
In the north, round steel of the Thai Nguyen Cast Iron and Steel Company is selling at VND9,100/kg, while joint venture steel companies are offering at VND9,200/kg. In the south, the Southern Steel Corporation is selling round steel at VND9,150/kg, rolled steel at VND8,850/kg, while VinaKyoei at VND9,220/kg, and VND9,030/kg respectively.
The cement price has also been sharply increasing. In April, the sold volume of cement reached 3.5mil tones, according to the Vietnam Cement Association, raising the total consumed volume of cement in the first four months of the year to 11.18mil tones. The cement price stays at VND770,000-835,000/tonne in the north, and VND880,000-1mil/tonne in the south.
However, the prices of these products are bound to increase as the input material prices (coal, electricity, petrol) have increased.
Nguyen Van Nam, Director General of the Hoang Thach Cement Company, said that the higher input material prices have made the cement production cost increase by VND25-30,000/tonne. Meanwhile, the recent petrol price hike, which has caused the higher transport fee, has also put difficulties for cement producers. Hoang Thach’s cement is now selling at VND720,000/tonne (PCV 30) and VND750,000/tonne (PCV 40).
As the input material prices have increased in the last time, the HCM City People’s Committee has recently made the decision on allowing local enterprises to adjust the selling prices of steel and cement spontaneously. Local enterprises would be allowed to lower or raise the prices by 5% compared to the price levels announced by the HCM City Departments of Construction and Finance.
According to Mr Cuong from VSA, the ingot steel in stock by the end of April has reached 300,000 tonnes, enough to meet the demand for the production in May and June. The inventory finished steel is reportedly at 260,000 tonnes.
Experts said that the fact that China removes the scheme on 8% VAT refund to exporters would limit the exports of finished steel products to Vietnam. Less China-made steel would be imported to Vietnam as the product would be $35/tonne more expensive. As China-made steel would not be a big rival any more, local steel producers would be free raise the selling prices, which they have planned for a long time.
As for cement, though the inventory cement and clinker remain high at 2.1mil tones, and producers have promised to provide enough cement for the last months of the second quarter, the Taskforce on Domestic Market Monitoring has predicted that the cement price would increase in the second quarter.
According to the Vietnam Cement Corporation, the demand for cement would increase in the second quarter, the high construction season, estimated to reach 10-11mil tones. However, cement would not see sharp price increase as more cement plants will become operational in the time to come, ensuring the profuse supplies to the market.
Source: VNE
Pham Chi Cuong, Chairman of the Vietnam Steel Association (VSA), said that the steel price keeps high, though the offered ingot steel has slightly decreased in the last couple of weeks. Explaining this, Mr Cuong said that steel mills now still use the ingot steel imported at high prices in the first quarter of the year.
In the north, round steel of the Thai Nguyen Cast Iron and Steel Company is selling at VND9,100/kg, while joint venture steel companies are offering at VND9,200/kg. In the south, the Southern Steel Corporation is selling round steel at VND9,150/kg, rolled steel at VND8,850/kg, while VinaKyoei at VND9,220/kg, and VND9,030/kg respectively.
The cement price has also been sharply increasing. In April, the sold volume of cement reached 3.5mil tones, according to the Vietnam Cement Association, raising the total consumed volume of cement in the first four months of the year to 11.18mil tones. The cement price stays at VND770,000-835,000/tonne in the north, and VND880,000-1mil/tonne in the south.
However, the prices of these products are bound to increase as the input material prices (coal, electricity, petrol) have increased.
Nguyen Van Nam, Director General of the Hoang Thach Cement Company, said that the higher input material prices have made the cement production cost increase by VND25-30,000/tonne. Meanwhile, the recent petrol price hike, which has caused the higher transport fee, has also put difficulties for cement producers. Hoang Thach’s cement is now selling at VND720,000/tonne (PCV 30) and VND750,000/tonne (PCV 40).
As the input material prices have increased in the last time, the HCM City People’s Committee has recently made the decision on allowing local enterprises to adjust the selling prices of steel and cement spontaneously. Local enterprises would be allowed to lower or raise the prices by 5% compared to the price levels announced by the HCM City Departments of Construction and Finance.
According to Mr Cuong from VSA, the ingot steel in stock by the end of April has reached 300,000 tonnes, enough to meet the demand for the production in May and June. The inventory finished steel is reportedly at 260,000 tonnes.
Experts said that the fact that China removes the scheme on 8% VAT refund to exporters would limit the exports of finished steel products to Vietnam. Less China-made steel would be imported to Vietnam as the product would be $35/tonne more expensive. As China-made steel would not be a big rival any more, local steel producers would be free raise the selling prices, which they have planned for a long time.
As for cement, though the inventory cement and clinker remain high at 2.1mil tones, and producers have promised to provide enough cement for the last months of the second quarter, the Taskforce on Domestic Market Monitoring has predicted that the cement price would increase in the second quarter.
According to the Vietnam Cement Corporation, the demand for cement would increase in the second quarter, the high construction season, estimated to reach 10-11mil tones. However, cement would not see sharp price increase as more cement plants will become operational in the time to come, ensuring the profuse supplies to the market.
Source: VNE
Saturday, April 14, 2007
Incombankbank Vietnam Cement tie up
The state-run Incombank and Vietnam Cement Corporation sealed a strategic partnership Thursday for joint growth.
Incombank will become a major investor in VNCC and its affiliates’ projects through providing finance.
In turn, VNCC will use banking and financial products and services only from Industrial and Commercial Bank of Vietnam, as Incombank is formally known.
The deal will also enable joint venture activities by the two.
Incombank has already invested more than VND5 trillion (US$311.7 million) in major VNCC’s cement plants in Hai Phong, Binh Phuoc, But Son, Hoang Mai, Tam Diep, Hoang Thach, and Ha Tien.
The bank has arranged 90 percent of the cost of a new production line at the Bim Son Cement Plant in Thanh Hoa province.
The Hanoi-based bank, which has a registered capital of VND10 trillion (US$625 million) is expected to list its shares on the stock market this year.
It is in the process of finding a foreign consultant to manage its initial public offering (IPO), planned for October.
Source: Thanh Nien
Incombank will become a major investor in VNCC and its affiliates’ projects through providing finance.
In turn, VNCC will use banking and financial products and services only from Industrial and Commercial Bank of Vietnam, as Incombank is formally known.
The deal will also enable joint venture activities by the two.
Incombank has already invested more than VND5 trillion (US$311.7 million) in major VNCC’s cement plants in Hai Phong, Binh Phuoc, But Son, Hoang Mai, Tam Diep, Hoang Thach, and Ha Tien.
The bank has arranged 90 percent of the cost of a new production line at the Bim Son Cement Plant in Thanh Hoa province.
The Hanoi-based bank, which has a registered capital of VND10 trillion (US$625 million) is expected to list its shares on the stock market this year.
It is in the process of finding a foreign consultant to manage its initial public offering (IPO), planned for October.
Source: Thanh Nien
Tuesday, January 16, 2007
Vietnamese cement production meets demand in 2010
The cement industry will fully meet the national demand by 2010 with supply expected to reach 60 million tonnes against 50 million tonnes for the national demand volume.
Experts voiced concerns over the fact that small projects are booming while strong investment has appeared to be very rare, making investment risky. They warned that a situation where a large number of businesses operate separately may lead to an unhealthy competition such as dumping products.
The industry has, therefore, called for a faster pace in equitising State-owned enterprises (SOEs) and setting up a national cement consortium with advanced technology and financially strong enough to compete in the international market.
The national demand for cement reached 32.5 million tonnes in 2006.
Source: VNA
Experts voiced concerns over the fact that small projects are booming while strong investment has appeared to be very rare, making investment risky. They warned that a situation where a large number of businesses operate separately may lead to an unhealthy competition such as dumping products.
The industry has, therefore, called for a faster pace in equitising State-owned enterprises (SOEs) and setting up a national cement consortium with advanced technology and financially strong enough to compete in the international market.
The national demand for cement reached 32.5 million tonnes in 2006.
Source: VNA
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