Tuesday,  Oct 23, 2018,11:48 (GMT+7) 0 0
Cement firms expand production despite oversupply
The Saigon Times Daily
Thursday,  Jun 14, 2018,14:28 (GMT+7)

Cement firms expand production despite oversupply

The Saigon Times Daily

Experts project the cement industry may soon face an oversupply - PHOTO: TL

HCMC - Although Vietnam’s cement production capacity has reached nearly 100 million tons per year, far higher than domestic demand, producers are still scaling up production, Lao Dong newspaper reported.

According to the Vietnam National Cement Association (VNCA), domestic cement consumption was only 60.27 million tons last year because of a shortage in construction sand and the impact of storms and floods on construction projects.

However, the cement industry may soon face an oversupply, experts stated.

The total designed capacity of the industry, including projects set to be completed this year, has reached 108 million tons per year. In addition, as operational cement plants have been upgraded, annual capacities toward 2020 may rise to 120-130 million tons.

As forecast in the planning, domestic consumption will be 93 million tons in 2020, and the excess amount will then be 25-36 million tons.

Despite the abundant cement supply, more cement production lines have been invested in, such as those put into operation last year at the Long Son 2 plant in Thanh Hoa Province, the Thanh Thang plant in Ha Nam Province and the Xuan Thanh plant in Ha Nam Province. The number of production lines was raised to 82, with total designed capacities of 99 million tons of cement, comprising 80% clinker and 20% additives.

In fact, the combined capacities of the cement plants could reach 113 million tons, with 70% clinker and 30% additives, the most common percentages at existing cement plants.

This year will see more production lines put into operation, with the Song Lam, Kaito Ha Tien and Tan Thang cement projects.

Many firms have invested in technological applications and have made use of industrial waste.

As of the end of last year, there were 10 production lines using heat to generate power, such as at the Cong Thanh 2, Long Son, Xuan Thanh and Thanh Thang plants.

Over a dozen plants have used locally available plaster to replace imported plaster, while six plants and a number of concrete mixing facilities have made use of ashes to replace clay, at a percentage of 6-12%. Others, such as INSEE, formerly Holcim, have used hazardous waste as an alternative fuel.

According to VNCA Chairman Nguyen Quang Cung, the production efficiency and competitiveness of Vietnam’s cement are still limited. In addition, products have not approached markets with high selling prices.

The association has proposed the prime minister should consider extending investments in cement projects from now until 2025 and promoting investments that enhance productivity and product quality.

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