Ha Tien 2 Cement JSC: Giving Facelift to South-western Region

Ha Tien 2 Cement Joint Stock Company, set up on March 21, 1964, was formerly Kien Luong Factory, a subordinate to Ha Tien Cement Enterprise. In 1992, production lines at Kien Luong Cement Factory were upgraded to manufacture finished cement instead of only clinker as before. With a designed capacity of 1.2 million tonnes of clinker and 500,000 tonnes of cement per year, the factory was capable of supplying cement for Mekong Delta region and clinkers for cement plants in Kien Giang province, Can Tho city and Ha Tien 1 Cement Company. To operate more effectively in the new context, in December 1992, the Ministry of Construction of Vietnam issued the Decision No. 577/BXD-TCLD to set up the Ha Tien 2 Cement Factory located in Kien Giang province. In September, 1993, the factory was renamed to Ha Tien 2 Cement Company operated under the Law on State-owned Enterprises and affiliated to the Vietnam Cement Corporation.

 

With operating principles of productivity, quality and efficiency, Ha Tien 2 Cement Company has turned out many types of high-grade cements such as PCB40 cement for civil and industrial projects, sulphate cement for saline, acidic and erosive areas, anti-cracking cement for large-block projects, and jumbo cement for large-sized heavy industry projects. The company has doubled its efforts to renovate technologies to increase the production to over 1 million tonnes of cement per year in addition to cutting the price and enhancing competitiveness. After endless efforts, Ha Tien 2 Cement has become a top-tier trademark in the Mekong Delta region. In 2006, the company was decorated the “Labour Hero in the Renovation Process” title, ranked the Top 500 Vietnamese companies ranking, the Vietnam Quality Award in 2008, the Top Ten Vietnam Trademark Gold Cup 2007-2008.

In 2008, the company made important achievements, reflecting the potency of a top-tier trademark. Not only conducting researches and applying many scientific achievements to cut product cost prices but the company also restructures and consolidates its apparatus to enhance managerial efficiency. In 2008, the company sold 1.44 million tonnes of cement to the market and earned VND1,400 billion, up 27 % from 2007, made a profit of VND173 billion, up over 122 % from a year earlier and paid VND118 billion to the State Budget, up 103 % from 2007. Remarkably, in 2008 Ha Tien 2 Cement Company went public and transformed its operating model into a joint stock company and listed its shares on the stock exchange.

 

In March 2009, the company’s shares were floated on the Ho Chi Minh Stock Exchange (HOSE), a move believed to increase the success of fund-raising activities of the company in the future. By its continuous efforts, the company’s grinding and packaging lines in Long An province started operations in June 2009, raising the annual cement output of Ha Tien 2 Cement to nearly 2 million tonnes per year.

 

Not only focusing on constructing and developing its business lines, as an economic entity in Kien Giang province, Ha Tien 2 Cement has made many contributions to the provincial socioeconomic development and exercised its duties to the State. The company paid VND59.6 billion to the State in 2007, VND118 billion in 2008 and VND96.9 billion in the first six months of 2009. Besides, the company has also actively taken part in poverty reduction activities in the province. Moreover, the business ties between Ha Tien 2 Cement with other local businesses and are expanded and upgraded in both quality and quantity.

Following its admirable business achievements, the company has is now preparing to improve its competitiveness in the international integration process. The company will have suitable policies to maintain its leading position in the Mekong Delta cement market, increase its market shares in Can Tho, Phu Quoc and widen its presence in the south-western region. Ha Tien 2 Cement will also accelerate the construction of new production lines with annual capacity of 1.26 million tonnes of clinker and 0.6 million tonnes of cement to operate in 2011 to meet the growing demand for cement in the Mekong Delta in particular and the southern Vietnam in general. After the new production facilities are commissioned, Ha Tien 2 will become one of biggest cement producers in Vietnam with annual output of 2.5 million tonnes of clinker and nearly 3 million tonnes of cement. Furthermore, the company is promoting a plan to build a fresh concrete plant and a pre-cast concrete plant to meet the regional construction demands and strengthen the branding of Ha Tien 2 Cement.