Strong Brand in Cement Industry

Hoang Mai Cement Joint Stock Company is the first northern company to apply product sales models from official distributors, which has proven highly effective and flexible. With competitive prices, the company’s sales have strongly expanded and inventory is always low.

In the first four months of 2010, clinker production output reached 457,260 tonnes, or 103 percent of the plan, and cement sales totalled 553,000 tonnes, up 20 percent over the same period in 2009.

Mr Nguyen Huu Quang, Director of Hoang Mai Cement Joint Stock Company, said: Cement companies still face difficulties in 2010. Indeed, price hikes in gasoline, coal and electricity directly impact cement production. The prices of materials and cement are also expected to increase. Unit prices in this period are forecast to climb 6 percent on average.

Energy saving

In order to implement energy-saving programmes to cut production costs and lower product prices, the company’s leadership set up planning to run cement and material grinders at non-peak hours, and power consumption for cement and clinker production fell. At the same time, the company boldly reduced kiln drying duration to reduce oil consumption. The cement producer strengthens management, supervision and maintenance of equipment to quickly respond to mechanical, electrical and technological incidents on production lines to resume production in the fastest manner possible. Hoang Mai Cement Joint Stock Company closely monitors material mixing to keep operations stable and constantly tightens quality control. To date, the company has adopted 21 initiatives which brought significant economic benefits for the company. In 2009, Hoang Mai Cement supplied 1.75 million tonnes, up 25 percent over 2008, and made a record turnover of VND1,380 billion, 9 percent higher than the annual plan and up 30 percent year on year.

Sustainable development

Although the cement market tended to shrink in the first four months of this year, sales growth by Hoang Mai Cement Joint Stock Company was still higher than the industry average. The firm turned out 457,260 tonnes of clinker in the first four months of 2010, including 120,078 tonnes in April, up 9 percent year on year. The cement producer plans to pay a 13 percent dividend for 2009.

Indeed, the market demand for Hoang Mai-trademarked cement products is on the rise. Apart from running its production equipment at full capacity, Hoang Mai Cement Joint Stock Company bought more than 75,000 tonnes of clinker from other cement producers to satisfy market demand in the first four months of 2010.

With guaranteed quality, good service and competitive price, Hoang Mai-branded cement is winning the trust of customers. In the first four months of 2010, the firm sold 553,000 tonnes of cement, up 20 percent year on year, made VND450.78 billion revenue, completed 52 percent of the annual profit target, and paid VND18.08 billion to the State Budget, up 20 percent year on year. Currently, the company has 33 official distributors and thousands of retailers nationwide.

Investment for the future

Hoang Mai Cement Joint Stock Company is managing the Hoang Mai B limestone mine with estimated reserves of 132,646,000 tonnes, enough for operations over 70 years or more, and Vinh Quynh clay mine with a reserve of 4.297 million tonnes, enough for production over 80 years or more. However, the company has not been able to produce gypsum, silica, iron ore and basalt. The company signed long-term contracts with mining and material companies to provide enough materials for its operation at the first production line, as well as the upcoming second production line, with 4.5 million tonnes of cement per year in the period 2010-2015. When the second line starts production, the company’s cement output will reach 6 million tonnes per year, supporting the construction of irrigation systems and hydropower plants to be built in central provinces and the Central Highlands region.

VCCI