Phu My Fertiliser Plant restarts operation

HA NOI (Biz Hub) — The Ninh Binh nitrogenous fertiliser plant could soon shut down due to its huge losses, according to the Viet Nam Chemical Group (Vinachem). In June 1, Chu Van Tuan, Vinachem deputy general director, said the group could stop operations of the Ninh Binh nitrogenous fertiliser plant because disadvantageous weather conditions have affected agricultural production which led to lower demand for fertilisers, including nitrogenous fertilisers. In addition, farmers in the north mainly use phosphate fertilisers so nitrogenous fertiliser consumption has faced numerous difficulties, he said. In 2015, two Ninh Binh and Bac Giang nitrogenous fertiliser plants…... [read more]

Vietnam’s agriculture needs about 2.2 million tonnes of urea fertiliser a year, but the domestic supply reached just 1 million tonnes and the rest was offset by imports. To increase the domestic supply for agricultural production, Vietnam has invested to build many fertiliser plants across the country like Phu My fertiliser plant in Ba Ria - Vung Tau province, Ca Mau fertiliser plant in Ca Mau province, DAP fertiliser plant No. 1 in Haiphong City, and most recently Ninh Binh fertiliser plant in Ninh Binh province. After nearly 2 years of commissioning, the Ninh Binh nitrogenous fertiliser plant now supplies…... [read more]

Ninh Binh Nitrogenous Fertiliser Plant stands out in Khanh Phu Industrial Park with rising chimneys, lofty towers, pipelines and modern conveyors. This is a key project of the chemical industry as well as Ninh Binh province. The project belongs to the Vietnamese chemical industry development master plan approved by the Prime Minister and aimed to balance the regional use of oil, gas and coal energy resources.On May 10, 2008, Vietnam National Chemical Group (Vinachem) held a ceremony to embark on the construction of Ninh Binh Nitrogenous Fertiliser Plant. After 45 months of construction, at 4:15 p.m. on March 30, 2012,…... [read more]

The plant’s construction was kicked off in May 2008 in Ninh Binh’s Khanh Phu industrial zone and came into operation in 2012, after 42 months of construction. In the nearly four years since then, the plant has been continuously operating at a deficit,  accumulating altogether over VND2 trillion ($89.9 million) in losses. Notably, in 2012, the company’s losses amounted to VND75 billion ($3.37 million), which increased to VND759 billion ($34.12 million) in 2013, VND500 billion ($22.48 million) in 2014, and VND370 billion ($16.63 million) in 2015. The plant was forced to call a temporary halt to its operations in late March, however,…... [read more]

After nearly four years since the plant came into operation in 2012, it has been running continuous deficit, accumulating altogether VND2.7 trillion ($121.49 million) in losses. Besides, Vinachem is shouldering great debts worth nearly VND8 trillion ($359.98 million).There are numerous reasons for the plant’s losses. Notably, in the last two years, urea fertiliser prices in the market have seen a continuous decrease, while manufacturing expenditures, including depreciation fee, high interest rate as well as the exchange rate difference, still stand at a high level.Besides, Ninh Binh nitrogenous fertiliser plant is fuelled by coal, while other such plants run on gas.…... [read more]

The project, covering anarea of over 15 hectares on the land housing Phu My Fertiliser Plant atPhu My 1 Industrial Zone in southern Ba Ria-Vung Tau province, consistsof two parts: revamping the NH3 Unit and build Phu My NPK Plant. Thecomplex project has a total investment capital of nearly 5 trillionVND, some 37 million USD, 70 percent of which will be financed by bankloans and another 30 percent by the owner's equity. Aftercompletion, the upgrading of the NH3 Unit will increase the currentammonia output at Phu My Fertilizer Plant by 90,000 tonnes per year,from the current 450,000 tonnes per year…... [read more]

According to Vinachem’s financial report, as of December 31, 2014, the company’s debts included VND6.74 trillion and VND1.2 trillion in long and short-term dues, respectively. Additionally, it has to pay an annual interest of nearly VND1 trillion ($44.8 million), equalling VND2.6 billion ($116,503) per day.To collect capital for developing Ninh Binh nitrogenous fertiliser plant, in September 2008, Vinachem took up a loan of $250 million form Chinese Eximbank, with an annual interest rate of 4 per cent for 15 years.As of December 31, 2014, China’s Eximbank disbursed VND4.27 trillion ($225 million) of the loan. Vinachem had to pay VND534.4 billion…... [read more]

Continuous losses While some other fertiliser firms are reporting profit, DAP-Vinachem Co., Ltd. (ticker DDV on HoSE), a subsidiary of Vietnam National Chemical Group (Vinachem) operating Dinh Vu diammonium phosphate (DAP) fertiliser plant, recorded a loss in the first half of 2017. In particular, although DDV’s revenue increased by 14.5 per cent over year, it still suffered a loss of VND55 billion ($2.42 million). According to DDV’s leaders, despite a slight recovery, the company is still confronted with difficulties in product demand, declining selling prices, increasing loan interest rates, and so on. Earlier, when forecasting business prospects for 2017, Nguyen…... [read more]

The Vietnam Joint Stock Commercial Bankfor Industry and Trade (Vietinbank) will provide the Vietnam Oil andGas Group (PVN) with a 220 million USD loan to build the Ca Maunitrogenous fertiliser plant.The contract was signed by the bank and the PVN in Hanoi on Sept. 25.The 800,000 tonne per year plant will be built in Khanh An commune, UMinh district in the southernmost province of Ca Mau and cost 900million USD. The contractors, the WEC-CMC Group from China, will carry out theproject under the Engineering-Procurement-Construction formula, toenable the plant to start running commercially by the second quarter of2012.Earlier this year Vietinbank…... [read more]

Nhan Dan Online – Ca Mau fertiliser plant has officially reached the production output of one million tons after nearly 16 months of operation, which 40% of met the national agricultural fertilizer demand. Normal 0 false false false MicrosoftInternetExplorer4 A ceremony to honour the achievement was held at the Ca Mau Gas-Electricity-Fertiliser complex, Ca Mau province on July 26 in the presence of Deputy Prime Minister Hoang Trung Hai. On the occasion, Prime Minister Nguyen Tan Dung sent a letter of congratulations to the Ca Mau fertiliser plant. The urea output of the plant has met 40% of the domestic…... [read more]