The new Xuan Thanh cement plant will boost production capacity in a fast-growing cement market
FLSmidth’s Per Mejnert Kristensen and Chairman of the Xuan Thanh Group Mr Nguyen Xuan Thanh seal the equipment supply contract for the new Xuan Thanh cement plant to start production in 2017
When Vietnam’s new Xuan Thanh cement plant kicks off production in 2017, it will not only be South East Asia’s largest cement plant, but it is expected to play a significant role in Vietnam’s fast-growing cement market, reflecting an economy in positive development.
According to Bloomberg, cement consumption for the month of May 2015 in Vietnam reached 6.38 million tonnes, nine percent higher than the same month in 2014. And this growth is expected to continue as residential and non-residential construction is boosted by the easing of Vietnam’s foreign property ownership regulations.
Vietnam already has the largest cement industry in the South East Asian market and is one of the biggest cement producers and consumers in the world after China, India, Turkey, US, Russia, Iran and Brazil. Its limestone reserves are expected to last for the next 100 years, with the cement industry's output potential projected to be as high as 100 MT annually by 2020.
A rich heritage
FLSmidth’s contract with the Xuan Thanh Group to supply the equipment for the 12,500 tpd cement plant has a value of approximately EUR 100m (DKK 750m). The plant will be located approximately 100 km south of Hanoi, Vietnam, a region rich with suitable raw materials, such as limestone and clay.
Per Mejnert Kristensen, President of FLSmidth’s Cement Division says that FLSmidth knows the Vietnamese cement market well. The company’s history in the country goes back to 1928 with the supply of a cement production line. Already then, the excellent quality of clinker produced reflected the high quality of raw materials and FLSmidth’s equipment processes. Since then, FLSmidth has supplied several plants in Vietnam, building a solid reputation in the Vietnamese industry.
“After being present in the country for so many years, we are delighted to have received this opportunity to consolidate our strong position in the region with the construction of the largest cement plant in South East Asia," - Per Mejnert Kristensen, President, FLSmidth’s Cement Division
Gregers Schmidt, General Manager at FLSmidth, agrees that FLSmidth’s involvement in this project is significant, particularly as it will be one of the biggest cement plants in the world. FLSmidth's aim was to provide support in all aspects of the project to ensure its success, resulting in FLSmidth being chosen to supply all equipment for the plant.
“We worked very hard to understand and meet the customer’s requirements, staying in close dialogue throughout the negotiation process,” says Gregers Schmidt.
He says that Xuan Thanh demanded the industry’s most advanced equipment and was especially focused on energy-saving technologies, which are crucial to cement producers' profitability.
In addition to the most energy-efficient equipment, the plant will boast state-of-the-art emission control systems from FLSmidth Airtech. It will also feature a QCX/RoboLab® quality control system and an ECS/ControlCenter™ process control system supplied by FLSmidth’s Automation division.
“The equipment we are supplying has been optimised to perform at industry-leading energy consumption and emissions levels,” says Gregers Schmidt, concluding, “Since it is all based on well-proven technology characterised by high productivity and flexibility, Xuan Thanh will be well positioned to meet production goals when the new plant is commissioned.”
About the Xuan Thanh Group
Based in Ninh Binh, Vietnam, the Xuan Thanh Group is not only a well-established player in the Vietnamese cement industry, but also a leading Vietnamese company in a number of different business activities. These include the construction of coastal roads, realty, cement production, energy and insurance services.