The Hanoitimes - The Deputy Minister of Construction, Nguyen Tran Nam, said in a recent meeting with the press that inventory in the domestic cement sector remains at a safe level.
The Hanoitimes - The Deputy Minister of Construction, Nguyen Tran Nam , said in a recent meeting with the press that inventory in the domestic cement sector remains at a safe level.
The total inventory has been estimated at 2.8 million tonnes, equal to about 20 days of production, he said, adding that not all factories keep the same amount of inventory.
Total consumption of cement for the first half of the year was estimated to be 28 million tonnes.
The sector has 62 production lines for reverter furnace cement with a combined capacity of 57.6 million tonnes per year. In 2011, cement demand was at just 54-55 million tonnes, but this figure is forecast to increase to 75-76 million by 2015 and to 113-115 million by 2020. “We should not make long-term plans based on short-term difficulties," the official said.
He also noted that transport projects, particularly in rural areas, using uncalcined raw materials, show great potential for the industry.
The deputy minister, however, pointed the finger at badly-performing cement factories, including Ha Long, Dong Banh,Quang Son and Tam Diep plants.
The Dong Bang cement plant has been operating at a loss because its shareholders did not contribute enough charter capital, leading to the capital shortage. Despite good production methods, Ha Long Cement Plant still faces capital shortage due to the higher investment costs, as a result of the long investment time, according to the official.
The Ministry of Construction has suspended three clinker-grinding projects in the south, which are not named in the approved plan.
Nam said the cement sector has taken steps in the right direction that are in line with the national plan for socio-economic development.
The Ministry of Construction is also encouraging cement firms to take measures to boost domestic consumption and exports.