3:59:50 PM | 31/10/2008
Haiphong Cement Company earned profits of VND45 billion in the first six months of this year, fulfilling 108 per cent of the whole year’s set target. The company also gained revenues of VND632 billion, equal to 155 per cent compared to the same period of 2007. These are significant figures in the difficult context of the national economy.
With the most advanced production assembly in Vietnam supplied by Denmark-based F.L,Smidth, Haiphong Cement Plant was built on December 25, 2002 in Trang Kenh along famous Bach Dang River. After 18-month construction, the plant officially produced first clinker batch on November 30, 2005.
Le Van Thanh – Director of the Company said: “the 18-month construction is the daring exploit in the Vietnam Cement Industry’s history as it has helped save time and cost of over 20 per cent (from US$208 million to US$185 million). The success has been attributed to the company’s efforts in speeding up the project construction, borrowing low-interest rate loans, and good investment management”.
In last months of 2007 and beginning of 2008, the company has faced difficulties and challenges, including higher production costs due to negative impacts of global economic slowdown and the country’s high inflation and slow economic growth. In the country, especially coal price up 70 per cent, FO petroleum up 52 per cent, steel price up from 30 per cent to 50 per cent, technology up 20-20 per cent, lending interest rate up 20 per cent per year and higher foreign exchange rate. These changes have raised cement price to VND61,000 per tonne. Many cement companies were sitting the same boat with Haiphong Cement Company. In the situation, the Haiphong Cement Company was in high risk of bankruptcy, Thanh said. With ceaseless efforts: taking initiative in negotiation with raw material suppliers to stabilise production cost, establishing councils of power, coal and FO petroleum, the company saved production cost, lowered product price and raise competitiveness for the products. Notably, workers were more enthusiastic when being paid by the job. They became more active, creative in their work. This was one of the main reasons why the Haiphong Cement Plant hit 100 per cent (3.3 trillion tonnes per day), and even surpassed its set average productivity of 5 per cent, with highest productivity of 3.55 trillion tonnes per day.
With results in quality and quantity, Haiphong Cement is striving to become the leading company in the national cement industry. The trademark “Dragon” of the Haiphong Cement Company is on the right way of development to conquer big construction projects.
Thanh Trung
Vietnamese
