Summary of Proposed Investment
Project Number
4867
Company Name
NGHI SON CEMENT CORPORATION - HANOI BRANCH
Date SPI Disclosed
May 16, 1997
Country
Viet Nam
Industry
Manufacturing
Status
Completed
Sector
Cement
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
A - Significant
Previous Events
Approved : Jun 23, 1997
Signed : Aug 12, 1998
Invested : Nov 19, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Vietnam-Nghi Son Cement Corporation |
| Region | Asia |
| Sector |
Projected Board DateJune 19, 1997
Company NameNghi Son Cement Corporation
Technical Partner and/or Major Shareholders
The foreign sponsor, NM Cement Company Ltd. (NMCC), has a 65% ownership share in the Project. NMCC is a consortium of the fourth and third largest Japanese cement producers, Nihon Cement Company Ltd. (70%) and Mitsubishi Materials Corporation (30%). The local sponsor, Vietnam National Cement Corporation (VNCC), has a 35% ownership share in the Project. VNCC is the state-owned company with responsibility for the production and distribution of cement in Vietnam.
Project Cost Including proposed IFC investment
Project Cost is estimated at US$ 373 million. The proposed IFC investment consists of an A Loan of US$ 30 million, and a B Loan of US$ 26.5 million.
Location of project and Description of site
The Project involves the use of 103 ha in Thanh Hoa Province, 155 ha in Nghe An Province (for quarry operations) and 9 ha in Nha Be District, Ho Chi Minh City (for a distribution terminal). The plant site will be located in Thanh Hoa Province, approximately 210 km south of Hanoi. The distribution terminal near Ho Chi Minh City is located about 25 km south of the center of the city.
Description of Company and Purpose of Project
The Project is a joint venture to construct and operate a new 2.14 million tons p.a. cement plant at Nghi Son in northern Vietnam. The Project expects to sell most of its cement in the domestic market and export the balance to other Asian countries. At present, demand for cement in Vietnam exceeds domestic supply by over 1.5 million tons p.a., and this gap will continue to grow unless additional capacity is added. The Project is one of several new plants and expansions which will help to bring domestic cement supply and demand into balance, hence reducing the country’s dependence on imports. Moreover, Vietnam’s natural endowments of limestone, coal and other raw materials provide the basis for developing an internationally competitive cement industry. Having secured a site for the cement plant which is on the coast and near abundant limestone reserves, the Project will take advantage of these natural endowments while also benefiting from the sponsors’ strengths. The foreign sponsors will contribute the technical knowledge and experience to build and operate a state-of-the-art plant with efficient production techniques, and the local sponsor will offer knowledge of the Vietnamese cement market. This combination of attributes should enable NSCC to compete effectively in Vietnam’s growing cement industry and provide about 13% of the country’s cement production capacity in the year 2000.
Environmental Category and Issues
This is a category A project under IFC’s environmental review procedures. Environmental issues associated with the Project include air emissions, liquid effluents, solid wastes, land use and resettlement, protection of marine resources and quarry reclamation. Occupational health and safety issues include employee exposure to noise and dust. Electrostatic precipitators will be installed to control dust emissions from the kiln line to less than 30 mg/Nm3, which is well within both the Government of Vietnam standard and World Bank guideline. NSCC will cover or install dust collectors on coal, raw materials and cement products storage areas, and on the long-distance belt conveyor that will transport limestone, clay and pozzolana from the limestone quarry to the plant. The plant will not discharge a significant amount of industrial water because the cooling water will be recycled. Domestic sewage will be collected and treated by a system consisting of a stabilization pond and septic tanks. NSCC will install secondary containment (e.g. dikes, berms) for the storage for oils, solvents and liquid fuels to prevent spills, and the contamination of soil, groundwater and surface waters. NSCC will recycle or reclaim solid waste materials where possible. If recycling or reclaim is not practical, solid waste will be disposed of in an acceptable manner, in compliance with local laws and regulations. Approximately 140 families are being relocated as a result of the project; 57 in Hai Thuong Commune and 80 in Quynh Loc Commune in northern Vietnam, and several in Nha Be District near Ho Chi Minh City. The Government’s program for ensuring the fair and equitable treatment of the people being relocated includes a formal Resettlement Plan. Employees at NSCC’s operations will be provided with the necessary Personal Protective Equipment (PPE) to protect their health and safety. The PPE will include, appropriate to the employee’s tasks and work area, respiratory equipment, hearing protection, and safety glasses, hats and shoes.
The are from the Public Information Center.
| Host country location of environmental documents | People’s Committee offices of Thanh Hoa Province, Nghe An Province, and Ho Chi Minh City |
Date SPI sent to PIC May 16, 1997
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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