Vietnam’s Largest Chemical Complex Set to Break Ground with $470 Million Investment

Duc Giang Chemical Group announces the imminent launch of the Duc Giang Nghi Son chemical complex in Thanh Hoa, signaling a significant milestone for Vietnam’s industrial landscape.

 

A view of Nghi Son Economic Zone

Duc Giang Chemical Group revealed plans to commence construction on the Duc Giang Chemical Complex project situated in the Nghi Son Economic Zone of Thanh Hoa province in a recent announcement preceding the 2024 General Meeting of Shareholders.

After four years of meticulous planning and pursuit, the project is poised to break ground in June this year, marking a pivotal juncture in the region’s industrial development.

Spanning approximately 30 hectares, the Duc Giang Nghi Son chemical complex, spearheaded by Duc Giang – Nghi Son One Member Company Limited, is slated to produce 136,000 tons of chemicals annually, with an initial investment outlay of $94.1 million for Phase 1, culminating in a total investment of $470 million across three phases.

Positioned to cater to Vietnam’s burgeoning industrial sectors, the project is set to introduce a range of essential chemicals, including compounds derived from chlorine gas, ChloraminB, and Phosphite acid, serving as disinfectants and viable substitutes for imported equivalents.

Anticipated to stimulate local economic activity, the complex aims to leverage indigenous resources such as limestone and salt, thereby fostering ancillary business opportunities.

Notably, the Duc Giang – Nghi Son Chemical Complex encompasses three distinct projects. Project No. 2 focuses on solid soda ash and PVC plastic production, with a budget of $235.3 million, while Project No. 3 entails the establishment of a Soda Factory with an investment of $141.2 million.

Upon full operationalization, the complex is poised to emerge as Vietnam’s premier chemical hub, aligned with Thanh Hoa’s vision to establish Industrial Park No. 15 (Dong Vang Industrial Park) as a nucleus for chemical manufacturing.

With site clearance and lease agreements for Phase 1 concluded, accompanied by a total disbursement of $18 million, the project has navigated regulatory approvals, including environmental impact assessments.

Positioned as a strategic asset for Duc Giang Chemical Group, the Nghi Son complex is deemed instrumental in fortifying the company’s long-term growth trajectory.

An upward revision of investment for Phase 1 to $392.2 million underscores the project’s scale and ambition, with an eye on capturing 28% of the total soda production capacity of the country’s five largest factories, in addition to cornering significant shares in NaOH, PVC plastic, and other derivative markets.

Upon operational commencement, the complex is slated to churn out a diverse array of chemical products, meeting critical domestic demand across various sectors.

Emphasizing the strategic significance of the venture, Duc Giang Chemical Group foresees substantial revenue contributions, with projections indicating an annual revenue of $58.8 million at maximum capacity.

Furthermore, the project is poised to generate employment for 1,500 individuals and contribute significantly to Thanh Hoa province’s fiscal coffers, cementing its pivotal role in the region’s economic landscape.

Source: en.vneconomy.vn

 

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