US$200 Mln Artificial Cajuput Plank Plant Underway in South Vietnam
Sai Gon Paper JSC has started construction of artificial cajuput plank processing plant in Khanh An IZ, U Minh district of southernmost Ca Mau province.
The plant capitalized at US$200 million will have total production capacity of 400,000 cubic meters of product or consume 700,000 cubic meters of materials annually.
The plant is scheduled to come into operation in 2010. Materials for the plant include cajuput, acacia, and eucalyptus which have grown well in Ca Mau.
Cajuput is seen as one of best materials for pulp and paper production. Since 1998, cajuput area has sharply increased in Mekong Delta provinces, reaching more than 200,000 hectares.
The cajuput is now offered at VND470,000 a ton, up 25 per cent from price of last year.
Authorities in Ca Mau province have recently given license to Tam Minh Thien Company to build paper mill in Tri Phai commune, Thoi Binh district, with total capacity of 100,000 tons of pulp and paper a year.
According to latest decision issued January 30 this year on paper development, Vietnam targets to produce 600,000 tons of pulp and 1.38 million tons of paper in 2010. The production output is expected to increase three-fold in 2020 to meeting 70 per cent of local demand.
To ensure sufficient materials for the mills, the country will have around 500,000-1 million hectares of material forest, in which cajuput is defined as one of key materials. (Youth)
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