As a leading fertiliser manufacturer in Hanoi, environmental protection is always a top emphasis of Van Dien Fused Magnesium Phosphate Company (VAFCO). Vietnam Business Forum interviewed Mr Hoang Van Tai, CEO of VAFCO, on this topic. Le Sang reports.
Could you please briefly introduce VAFCO’s innovative and creative results and its action plans to green its operations?
As old phosphate production technology easily polluted the environment and consumed energy, hence resulting in high product costs and wasting resources. Therefore, to survive and develop, we have specific development orientations and launch emulation movements to encourage scientific and technological studies, focusing on the following areas:
Studying the use of domestic anthracite coal instead of imported coke so as to use 100 percent of domestic inputs for fertiliser production for agriculture.
Researching on upgrading blast furnaces to produce fused magnesium phosphate (FMP) using domestic anthracite coal to enhance productivity and equipment, reduce fuel, energy consumptions and other costs. The use of domestic anthracite coal has helped increase the furnace capacity by nearly 600 percent while reducing coal lost by 67.7 percent, power consumption by 67 percent, and increasing the output by 10 times.
Studying to reduce energy loss, mitigate environmental pollution and optimise the country’s resources used. Every year, the company takes 100,000 tonnes of fine ores a year to use as input materials in furnaces; raising product quality to meet domestic and export markets. Apart from the domestic market, the company also exports fused magnesium phosphate to foreign markets like Australia, Japan, Malaysia and Taiwan.
We’ve studied scientific and technological solutions to treat solid waste and emission to ensure environmental hygiene standards to reduce input consumption by 21.8 percent. For 10 years applying scientific solutions, the company has saved 287,000 tonnes of fine ores and cut costs by VND51 billion. Treated wastewater is brought back to use, thus helping reduce 5 million cubic metres of water, save 1 million KWh a year and collect 3,500 tonnes of dust worth VND7-10 billion a year. Besides, the company researched technological solutions to cut gas emissions to meet environmental requirements.
Also, VAFCO has conducted scientific and technological researches on production solutions. In the spirit of operating motto “Manufacturing, environment-friendly, high-quality products,” the company has introduced special-purpose fertilisers for different crop and soil to cut costs. Hence, the company has affirmed its position and name in the heart of farmers.
In the coming time, how will VAFCO protect the environment, pursue green sustainable growth and uphold social responsibility?
We are committed to carrying out major measures like raising awareness and attitude of employees in environmental protection for the survival and development of the company. The company will continuously renovate management measures, accelerate labour safety movements, ensure good health for workers; and build corporate culture to make every staff feel really proud of being a VAFCO member.
In addition, we assign responsibility to every employee in protecting the environment, continuously study technological innovation, apply science and technology to improve working conditions for employees, and upgrade machinery and equipment to raise productivity and cut cost prices.
Could you share some remarkable targets in the company’s production and business operations in 2015?
In the first eight months of 2015, greatly impacted by domestic economic difficulties, the company witnessed mounting inventories, sharp selling price plunges, fierce competition on the market, and shrinking demand on prolonged droughts which resulted in agricultural production reduction. Meanwhile, input costs like electricity, petroleum, coal, ores and inputs continued to go up. Tax policies on fertilisers changed from January 1, 2015 while the cost of sales jumped.
To deal with those difficulties, the company has carried out several measures to product management and consumption. In product marketing, the company has actively prepared enough products and transported to intermediary warehouses.
In production, the company has focused on stabilising production, raising productivity and quality, and rationalising production stages to cut costs, reduce cost prices and boost brand reputation. It has also maintained and promoted the effect of ISO9001-2008 management system, strictly carried out technological processes and quality regulations.
Besides, the company has applied clear rewarding and penalty regimes to encourage employees to actively take part in production and deter wrongdoing and mistakes.
In the first eight months, the company turned out 212,434 tonnes, equal to 68.5 percent of the 2015 plan; and sold 265,407 tonnes, or 89.8 percent of the full-year plan. Sales fulfilled 90.8 percent of the plan while profit achieved 81.3 percent.
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