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Luks Cement factory in Hue of Vietnam


Grinding plant in Ninh Thuan of Vietnam,
Sept 2009


Grinding plant in Ninh Thuan of Vietnam,
Sept 2009

 

The Group engages in manufacturing, distribution and marketing of cement products in Vietnam through its 100% owned subsidiary, Luks Cement (Vietnam) Limited. Our existing cement plant is located in Hue, an ancient city in the central part of Vietnam. The cement plant has been running in full capacity of around 800,000 tonnes per annum since 2005. Starting from January 2007, the total annual capacity of the cement plant will be increased to 1.5 million tonnes, with a new production line joining into operation.

Our cement plant produces all grades of cement from PCB30, PC40 and high density cement for jetty or tunnel. Most of the products are sold in the domestic market, with a few quantity of clinkers supplied to the Laos' market. We distribute our cement to construction sites directly, as well as through local dealers to the retail market. Major projects using our cement including the Hai Van Pass Tunnel, Dung Quat Oil Refineries Plant and numerous highways and hydro-electric power stations in Vietnam. The brand name of the Group's cement products, namely "KIM DINH" has been widely recognized in the local market, especially around the regions of the central Vietnam.

Currently, the Group's cement plant is the only cement plant having been awarded the certificates of ISO 9001, ISO 14001 and ISO 18001 in Vietnam, demonstrating that our cement plant has already established a well-recognized management system.

Foreseeing a persistent strong market demand for cement in Vietnam and together with the abundant reserve of our limestone mine (1km from the cement plant) which can support production of 3 million tonnes cement at least for 50 years, the Group has been undergoing its further expansion of annual capacity to 2.8 million tonnes by increasing a new production line of 1.3 million tonnes per annum. The new line will be divided into two parts. The part for clinkers' production will be built beside the Group's existing cement plant, whereas the clinkers' grinding station will be built on an industrial land along the Saigon River in the outskirt of Ho Chi Minh City, which can largely reduce the transportation cost of cement to the southern part of Vietnam. Investment license for the new line has been granted by the Vietnamese Central government in December 2006. The new line is expected to commence operation in the 2nd quarter of 2008.