First Time as Korean Company
Taekwang Co. announced that they held a ground-breaking ceremony to build a composite fertilizer plant in the Hiep Phuoc Industrial Complex in Ho Chi Minh City, Vietnam for the first time as a Korean company on July 20.
They will build a nitrogen, phosphorus and potassium (NPK) composite fertilizer plant with an annual production capacity of 360,000 tons with an investment of US$ 60 million on land of 90,000 square meters. The builder is SC Engineering and it will take 15 months to complete the factory. The factory is expected to begin commercial production around September of next year.
The Taekwang Group established KVF in Vietnam in May for its fertilizer business. Taekwang and Hu-Chems have 51% and 49% stakes in the company.
Hu-Chems is in charge of running the factory and managing the company. Taekwang Co. will sell and market products via a local network based on its 22-year-long know-how in the Vietnamese market.
“The Taekwang Group has contributed to Vietnam’s economic development via the footwear business over the past 22 years,” Park Yeon-cha, chairman of the Taekwang Group. “From now on, we will make a contribution to the development of Vietnam’s agriculture by producing and distributing high-quality fertilizers.”
“When KVF Factory with an annual production capacity of 360,000 tons operates on a full scale beginning next year, the factory will produce 9% of Vietnam’s entire NPK fertilizer production,” said Choi Kyu-seong, president of Hu-Chems, adding, “We will post up to 150 billion won in annual sales.”