[Vnbiz] Vietnam's state-owned paper firm to build plant

[Phan, Tai]

Vietnam's state-owned paper firm to build plant 


HANOI (VNS) - The Ministry of Industry is seeking Government approval for a VND8.3 trillion ($518 million) project to increase the production capacity of the Bai Bang Paper Co (Bapaco) by 250,000 tons per year.

Construction of a new pulp production plant will cost VND5.7 trillion and an additional VND2.6 million will be invested in establishing a raw materials supply network, the ministry said.

The ministry will conduct a formal bidding process to select a foreign contractor to enter into an engineering, procurement and construction (EPC) contract to build the new pulp production plant, and the selected contractor will be required to co-operate with local sub-contractors to build and supply equipment for the plant.

The construction should be completed within 36 months from the date of appointing a contractor, the ministry said.

The establishment of a raw materials supply network will include the setting up of a forest and transportation network and would be finished by 2012, the ministry said.

The ministry also asked the Government to act as a guarantor for loans from foreign banks and urge local banks to make loans for the construction and operation of the new pulp production facility. Bapaco, a State-owned company operated by the Ministry of Industry, has an annual production capacity of over 100,000 tons per year. Last year, it produced 92,000 tons of paper, of which 6,000 tons was exported to Singapore, Malaysia, the Philippines and Iran. The company signed a contract earlier this year with a U.S. partner to export 1,000 tons of paper to the U.S.