While many developed countries are shutting down their paper plants and relocating them to other countries, a lot of investment projects in paper production are appearing in Vietnam.
Vietnam has been trying to attract foreign investment in paper production for the last 20 years since the country opened its door to foreign direct investors. However, no investor has wanted to inject money in this sector, not including the projects on making tissue and toilet paper, though paper production was protected by the state with a high tax rates on imports.
However, everything has changed: since the protection was removed, a lot of big-scale projects on making paper and pulp have been registered.
According to the Ministry of Industry, projects to be run by foreign investors in the coming time have the capacity of around 1 million tonnes of pulp and 600,000 tonnes of paper every year.
These include the project by LEE & Man with the tentative capacity of 350,000 tonnes of paper and 150,000 tonnes of pulp, by Vina Kraft (220,000 tonnes of paper), and the project by Japanese Sojiz, which is expected to produce 600,000 tonnes of pulp a year in the Central Highlands. Moreover, there are a lot of projects of domestic investors, including the Vietnam Paper Corporation (Vinapimex), Vinh Phu Paper Company, Phu Giang Packaging Company, Binh An Company, which have the capacity of 50,000-250,000 tonnes each.
An official from Vinapimex said that investors were rushing to produce pulp and paper in Vietnam because they heard about the sharp increase in demand and prices of paper products. The pulp price has increased by 70% since 2001.
However, he said that Vietnam could attract many investors because it had profuse material sources, which makes Vietnam deserve to be the target destination for investors from countries which have given up producing paper for fear of polluting the environment.
In fact, many paper plants in Europe, North America and China have had to shut down due to environmental pollution and ineffectiveness. China, for example, will shut down a lot of paper plants which have the total capacity of up to 3mil tonnes.
In Vietnam, paper production proves to be the industry which most seriously damages the environment. The Cau River area, for example, has been seriously polluted by the paper mills there with 3,500 cu m of waste water every day being discharged into the river.
Vietnam is now using backward technologies in paper production. In order to create one tonne of finished paper, mills have to use 30-100 cu m of water, while modern mills in the world consume 7-15 cu m only for every tonne of paper.
In all cases, Vietnam will still have to develop its pulp and paper industry, as the industry will be the stable outlet for the programme on 5mil ha of forest. What Vietnam should do is to develop the paper industry while preventing environmental pollution.
The Ministry of Natural Resources and the Environment said that it was compiling regulations which set strict requirements on the quality of waste water from paper mills.
Moreover, according to the Vietnam Paper and Pulp Producers’ Association, it is also necessary to set requirements on technologies and equipment used in paper mills. Experts said that only the mills with the capacity of more than 100,000 tonnes a year can make appropriate investment in a waste water treatment system.
Vietnam should only permit the import of modern technologies which use a low level of water. The experts have warned that if Vietnam does not set strict requirements on imported technologies, the backward technologies once used in Europe and China will be imported and installed in Vietnam’s mills.
In fact, under the current regulations, all technologies must be examined before being imported into Vietnam. However, the regulations seem to make no sense. Investors all are required to make reports about the possible impacts of the projects on the environment and asked to have modern water treatment system. However, in fact, few investors fulfill their commitments, and the rest allow waste to go directly into rivers and pollute the environment.
Source: VNE
Showing posts with label Paper. Show all posts
Showing posts with label Paper. Show all posts
Sunday, July 22, 2007
Saturday, July 21, 2007
Hapaco to begin building refinery end-2007
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
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
Monday, June 25, 2007
Saigon Paper expects '07 profit up 115%
Vietnamese paper maker Saigon Paper Corp (SGC), which will launch its IPO next month, has forecast net profit this year should soar 115 percent from 2006 to $2.3 million due to strong demand and expanded capacity.
The company said in its prospectus seen on Monday 2007 revenues should jump 117 percent from last year to $28 million due to strong demand for tissue and napkins products and 50,000 tonnes of new capacity at two new plants in the south.
The Ho Chi Minh City-based company said it had set a starting price for its 3 million shares at an auction scheduled for July at 20,000 dong ($1.24), or double the stock's face value.
SGC, which has assets of $28 million, plans to invest about $1 million of the $3.7 million expected from the initial public offering in two new paper plants in Hung Yen province in the north and the central province of Quang Nam.
The firm, which makes tissue and toilet papers for domestic use and export to Africa, said it aimed to achieve a return-on-equity of 31.2 percent and pay a dividend of 15 percent this year.
Source: Reuters
The company said in its prospectus seen on Monday 2007 revenues should jump 117 percent from last year to $28 million due to strong demand for tissue and napkins products and 50,000 tonnes of new capacity at two new plants in the south.
The Ho Chi Minh City-based company said it had set a starting price for its 3 million shares at an auction scheduled for July at 20,000 dong ($1.24), or double the stock's face value.
SGC, which has assets of $28 million, plans to invest about $1 million of the $3.7 million expected from the initial public offering in two new paper plants in Hung Yen province in the north and the central province of Quang Nam.
The firm, which makes tissue and toilet papers for domestic use and export to Africa, said it aimed to achieve a return-on-equity of 31.2 percent and pay a dividend of 15 percent this year.
Source: Reuters
Thursday, February 22, 2007
Ministry of Industry publishes planned investments
Food processing and consumer goods companies plan to invest about VND6.91 trillion (431.9mio US$) to implement new projects this year, according to the Ministry of Industry.
Under the planned investments, there are large-scale projects such as the second phase of the Bai Bang Paper Company; construction of two breweries, each able to make 100 million litres of beer a year; and capacity expansion by the Viet Nam Garment and Textile Corporation.
The Ministry of Industry has suggested that companies accelerate development efforts and take the initiative to look for new capital resources, as well as reduce construction investment risks. Investors also need to focus on the new projects aimed at modernising the industry, say officials.
In the past, investments have not ended in positive results due to difficulties with land clearance and insufficient capital resources, according to the ministry.
The country’s industrial output in January was estimated at VND46.15 trillion (2.88 billion US$), up 26 per cent over the same period last year.
Source: VNS
Under the planned investments, there are large-scale projects such as the second phase of the Bai Bang Paper Company; construction of two breweries, each able to make 100 million litres of beer a year; and capacity expansion by the Viet Nam Garment and Textile Corporation.
The Ministry of Industry has suggested that companies accelerate development efforts and take the initiative to look for new capital resources, as well as reduce construction investment risks. Investors also need to focus on the new projects aimed at modernising the industry, say officials.
In the past, investments have not ended in positive results due to difficulties with land clearance and insufficient capital resources, according to the ministry.
The country’s industrial output in January was estimated at VND46.15 trillion (2.88 billion US$), up 26 per cent over the same period last year.
Source: VNS
Tuesday, January 16, 2007
HAPACO's refinery project funded by German bank
Tissue paper maker Hapaco said on Tuesday it had secured a deal to borrow 128mio US$ from a German bank to finance a 150mio US$ oil refinery project.
The refinery would have a 1mio tonnes per year capacity in an industrial zone in the northern port of Haiphong in which Belgian-based investment venture International Port Engineering and Management has a stake.
"We are still looking for the financing of the remaining 15% investment for the project," a Hapaco spokeswoman said.
The 128mio US$ is provided by Sachsen LB of Germany.
Hapaco officials have said the plant would use around 20,000 barrels per day of Vietnamese crude oil when it starts operating by 2010.
Several foreign firms including Russia's Techno Star have sought to build refineries with investment of under 500mio US$ but energy experts say none have materialised because of lack of access to crude, which is controlled by state-run oil monopoly Petrovietnam.
Hapaco's stock closed at 40,900 VNDong (2.53 US$) per share on the Ho Chi Minh City Securities Trading Center on Monday, up 4.87% from last Friday, taking its market capitalisation to around 15mio US$.
Vietnam, the third largest crude oil producer in Southeast Asia with average daily output of about 350,000 barrels, still relies entirely on oil product imports as it lacks refineries.
Petrovietnam awarded a contract to build the country's first refinery in June, with the 130,000-bpd plant slated to start operation by early 2009.
Source: Reuters
The refinery would have a 1mio tonnes per year capacity in an industrial zone in the northern port of Haiphong in which Belgian-based investment venture International Port Engineering and Management has a stake.
"We are still looking for the financing of the remaining 15% investment for the project," a Hapaco spokeswoman said.
The 128mio US$ is provided by Sachsen LB of Germany.
Hapaco officials have said the plant would use around 20,000 barrels per day of Vietnamese crude oil when it starts operating by 2010.
Several foreign firms including Russia's Techno Star have sought to build refineries with investment of under 500mio US$ but energy experts say none have materialised because of lack of access to crude, which is controlled by state-run oil monopoly Petrovietnam.
Hapaco's stock closed at 40,900 VNDong (2.53 US$) per share on the Ho Chi Minh City Securities Trading Center on Monday, up 4.87% from last Friday, taking its market capitalisation to around 15mio US$.
Vietnam, the third largest crude oil producer in Southeast Asia with average daily output of about 350,000 barrels, still relies entirely on oil product imports as it lacks refineries.
Petrovietnam awarded a contract to build the country's first refinery in June, with the 130,000-bpd plant slated to start operation by early 2009.
Source: Reuters
Wednesday, December 13, 2006
Thai paper firm to build packaging factory in Vietnam
Siam Pulp and Paper plans to invest 220mio US$ to set up a large packaging paper facility in Vietnam’s southern Binh Duong province. The facility will be able to turn out 220,000 tons of packaging products per year when it goes on stream in early 2009.
30% of its output will be exported while the rest will be sold in Vietnam, where the company already has a market. The new facility will scale up SCG’s packaging paper capacity to 1.74 million tons a year.
The company expects strong demand for such products in Vietnam as almost half of the country’s demand of 580,000 tons this year was imported. Annual growth in demand is forecast to be 10-15% for the next 10 years.
Source: Tuoi Tre
30% of its output will be exported while the rest will be sold in Vietnam, where the company already has a market. The new facility will scale up SCG’s packaging paper capacity to 1.74 million tons a year.
The company expects strong demand for such products in Vietnam as almost half of the country’s demand of 580,000 tons this year was imported. Annual growth in demand is forecast to be 10-15% for the next 10 years.
Source: Tuoi Tre
Friday, November 24, 2006
Printing and packaging shares listed
Tan Binh Culture Joint Stock Company, Alta, worth VND13 billion ($808,709), traded 1.33 million shares under the ALT code on the bourse, and saw 8,100 shares changing hands at VND32,000 on its debut.
Alta runs a printing and packaging business, reported a turnover last year of VND164.85 billion ($10 million) while the figure in the year’s first half was VND107.2 billion ($6.6 million).
After listing, the company plans to issue 800,000 more shares to scale up capital and invest in new projects.
It sets the year’s revenue target of VND180 billion ($11 million) and after profit rising 13.9 percent to VND3.58 billion ($222,706).
Alta runs a printing and packaging business, reported a turnover last year of VND164.85 billion ($10 million) while the figure in the year’s first half was VND107.2 billion ($6.6 million).
After listing, the company plans to issue 800,000 more shares to scale up capital and invest in new projects.
It sets the year’s revenue target of VND180 billion ($11 million) and after profit rising 13.9 percent to VND3.58 billion ($222,706).
Thursday, November 23, 2006
Paper maker raised 6.2mio USD in IPO
The Tan Mai Paper Company, the second largest Vietnamese paper maker, has raised 100.2 billion dong ($6.2 million) in an auction of state shares to the public, the stock market said on Thursday. The company sold all 6.96 million shares on offer, or 20 percent of its shares, to domestic investors in its initial public offering on Wednesday.
Tan Mai, established in 1958 in the southern province of Dong Nai, is now valued at 500 billion dong ($31 million).Ten institutional and 262 individual investors offered bids to buy 11.4 million shares in Tan Mai, nearly twice the number of shares on offer.
The shares were sold at an average 14,393 dong ($0.9) each, above the 12,000-dong starting price set for bids.
Tan Mai, established in 1958 in the southern province of Dong Nai, is now valued at 500 billion dong ($31 million).Ten institutional and 262 individual investors offered bids to buy 11.4 million shares in Tan Mai, nearly twice the number of shares on offer.
The shares were sold at an average 14,393 dong ($0.9) each, above the 12,000-dong starting price set for bids.
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