Construction ministry stops cement projects

The Ministry of Construction has scrapped four cement-making projects because they do not meet the requirements of the nation’s Cement Industry Development Plan.

Deputy director of the ministry’s Department for Construction Materials Nguyen Van Ngoc said that the projects were Huu Nghi and Yen Mao in northern Phu Tho Province, the Phu Tan plant in the northern Hai Duong province and the Ngoc Ha plant in the northern province of Ha Giang.

Ngoc said the ministry’s move followed a recent review of cement projects planned for now until 2015. The four abandoned projects were mostly small-scale and invested by local private enterprises, he said.

Under the Cement Industry Development Plan approved in 2005 by the Prime Minister, the country will concentrate on implementing major cement projects with a daily output of more than 3,000 tonnes. Cement plants must also be built near raw material sources and be in keeping with local infrastructure, transportation and demand.

According to the Viet Nam Cement Association, the country currently has 105 cement-making plants with a total capacity of more than 61 million tonnes per year. Most of them are located in the northern and central provinces and cities of Da Nang, Hai Phong, Hai Duong, Hoa Binh, Ninh Binh, Nghe An, Quang Ninh and Thanh Hoa.

The association in September proposed that the construction ministry stop licensing cement projects to prevent a glut. It forecast that the country would produce roughly 10-12 million tonnes of cement more than needed next year if all cement plants ran at full capacity.

According to the cement industry master plan that runs until 2010, a total of 53 cement production projects would be completed and put into operation during the 2005-10 period. By 2011, the number would rise to 63.

Industry experts forecast that the country would be able to produce roughly 130 tonnes of cement by 2020, leading to a surplus of roughly 30 million tonnes.

Tags: Vietnam business news, Vietnam cement industry