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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. The Group’s cement plant is strategically located in Hue Province in the central part of Vietnam. The Group started with a joint venture with the provincial government of Hue to build and operate a cement manufacturing plant with an annual capacity of 800,000 tonnes in 1993. The cement plant was completed and put into trial production in 1996. During 2005, the Group completed acquisitions of the shareholdings from the provincial government and a minority shareholder of Luks Cement (Vietnam) Limited and thus the cement plant became a 100% subsidiary of the Group.

Subsequent to the acquisitions, the Group started to expand the capacity of the cement plant. In 2008, the total capacity of the cement plant was increased to 1.5 million tonnes per annum after the completion of a new production line with an annual capacity of 700,000 tonnes. Thereafter, the Group further invested into a new clinkers’ production line with a capacity of 3000 tonnes clinkers per day, and thus the total capacity of the cement plant was expanded to 2.8 million tonnes per annum. The new production line was completed in September 2009.

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.

The Group's cement plant has been awarded with 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.

Please refer to the Group’s annual reports under the section “Management Discussion and Analysis” for the latest development of the Group’s cement business.