Vinacomin - Lam Dong Aluminum Company: Ongoing Innovation for Better Performance

10:09:51 AM | 20/7/2020

Over 10 years of construction and development (2010-2020), Lam Dong Aluminum Company (LDA) always strives to boost production and innovation to meet development requirements. After nearly seven years of commercial operation (from October 1, 2013), LDA has sent optimistic signals from the aluminum industry in Vietnam.

Asserting the leadership

Lam Dong Aluminum Company was established on October 1, 2010 to test-run and take over Lam Dong Bauxite - Aluminum Complex invested by the Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin).

After test-running, in October 2013, LDA officially took over and commercially operated the complex. Costing VND15.4 trillion, this was the largest investment project of Vinacomin Group and the largest industrial production investment project in Lam Dong province. At that time, the project was a tough difficulty because this was the first alumina production project in Vietnam. There was no precedent case for it to learn while the technology was complicated, difficult and new.

Before initial difficulties, Director Vu Minh Thanh together with many officials, engineers and workers made many technical innovations. Thanh alone had many initiatives to improve production lines. As a director who ran the whole company since the takeover, trial run and operation, he actively built the workforce, established production models, overcame difficulties and challenges to take over and master aluminum technology. Then, he directed strategic planning and vision, built business management models and systems, developed human resources and corporate culture, and accelerated operations beyond the designed capacity.

More than seven years after taking over and commercially operating the aluminum complex powered by new sophisticated technology, Lam Dong Aluminum Company has mastered production technology, confirmed its leading role in the country's aluminum manufacturing industry. In 2019, its alumina production reached 686,000 metric tons, equivalent to 105.1% of the full-year plan and 1.07% higher than in 2018. The company made revenue of more than VND3,239 billion and a profit of over VND60 billion, 5.8% higher than in 2018. Its high-quality products are appreciated by customers in India, the Middle Eastern (UAE), China, South Korea, Japan and Thailand. In 2020, the firm expected its aluminum equivalent output to reach 690,000 metric tons, approximately 6.2% higher than the designed capacity.

Not only excelling business performance, the project has made positive contributions to local socioeconomic development, created a new face of development, prosperity and modernity in the project area: Sponsoring and supporting road, school and infrastructure construction programs and carrying out philanthropic activities with the locality. To date, the project has paid more than VND3,200 billion to the State Budget, contributed over 30% of industrial production value and nearly 40% of export value of Lam Dong province.

Optimization for sustainable development

As a pioneer in bauxite mining and alumina processing to produce aluminum, LDA's production lines require continuous and smooth operation. The company has drastically and synchronously implemented optimization and standardization programs, plan management and access to Technology 4.0, and deployed many solutions for improved business performance. The company boldly invested and tested gas generators in different modes to find out the most optimal operating mode. In addition, the drastic deployment of automation programs has helped reduce coal gas consumption to 581.3 Nm3 gas per ton of product as compared to the designed consumption of 600 Nm3 of gas, reduced operating manpower and increased the furnace productivity from 1,850 tons of aluminum a day to 1,953 tons, or an increase of 5.3%.

In particular, the initiative “Improving water efficiency in condensed stages and adjusting fluid” won the first prize in the 9th Lam Dong Technical Innovation Contest and the second prize in the 15th National Technical Innovation Contest (2018-2019). This initiative increased the water capacity in condensing stations by 12 cubic meters an hour, equivalent to an increase of 40,000 tons of aluminum product a year; reduced low pressure steam consumption per cubic meters of water from 0.28 tons per cubic meters of water to 0.24 tons per cubic meters of water, or saving 65,000 tons of steam a year and saving about VND24 billion a year. Last but not least, the company also successfully built a “factory - park” model featured by green, clean and beautiful criteria.

By 2025, LDA will successfully complete digital transformation and operate all fields with software. LDA will be a digital business where there is no paper, no book.

Mr. Vu Minh Thanh, LDA Director

With its efforts and progress in business and its practical activities for the society, in 2019, the company was recognized and presented many awards by localities and Vinacomin, the Party and the State. The Company's Party Committee was rewarded for excellent performance in 2019 by the Vinacomin Group’s Party Committee and the Emulation Flag by the State Capital Management Committee. Mr. Vu Minh Thanh, Secretary of the Party Committee, Director of the Company, was honored to be one of 100 entrepreneurs to be awarded Thanh Giong Cup 2019 - the title of outstanding entrepreneurs - by the Vietnam Chamber of Commerce and Industry (VCCI).

Recently, before complicated evolution of the COVID-19 pandemic, LDA's business is still normal as usual; production lines and machinery are in continuous and safe operation. This good performance comes from the timely application of V-Office management software and digital signatures that improve administration, showing the company’s vision. In addition, the company applied Infor EAM accounting software and electromechanical management software to improve management and synchronization capabilities of the database system. Well-prepared and creative approach, management and resolution of technological issues contributes to the initiative and success of the Company.

LDA Director Vu Minh Thanh said the new context forced the company to make changes to meet development requirements. In the coming years, LDA aims to become a leading aluminum producer in Vietnam and has a strong brand, prestige and competitiveness in the world market. LDA will continue to boost production capacity, effectively implement production optimization and standardization programs, ensure stable, safe production, improve business competitiveness and performance, boost production capacity, and maintain a stable and sustainable development position.

By Ngo San, Vietnam Business Forum