Vissai Group obtains funds to invest in Song Lam Cement Plant in Nghe An province.
The Vissai Group has invested in the Song Lam Cement Plant in northern Nghe An province with credit provided by the Bank for Investment and Development of Vietnam (BIDV).
The contract for the VND6.3 trillion ($294.14 million) credit was signed earlier this month, according to the Vissai Group.
Construction began on February 4 in Bai Son commune in Do Luong district, Nghe An province, and the plant will have a capacity of 18,000 tons of clinker per day, equal to 7.2 million tons of cement per year.
Phase 1, from 2015 to 2017, includes two cement lines with a total capacity of 12,000 tons of clinker per day (equal to 4 million tons of cement per year), and will create 2,000 jobs. Phase 2, from 2017 to 2020, will open a third line with a capacity of 6,000 tons of clinker per day.
Its high quality cement will serve construction and infrastructure on Vietnam's offshore islands and construction within the national target project against climate change. Total investment in the project is expected to be VND10.5 trillion ($490.24 million) and the plant will open after 18 months of construction.
Representatives from BIDV said that in the last seven years the bank has funded several major projects in Nghe An province, in infrastructure development, hydropower plants, ports, hospitals, and social housing.