INSEE Vietnam, a subsidiary of Thailand’s Siam City Cement, began Sunday construction of its second production line worth $35.7 million in Ba Ria-Vung Tau province.
The Thi Vai cement grinding station mill No. 2 is the second investment of the firm in its facility in the southern coastal province, after the first worth $53 million in 2003, aiming to serve growing local demand.
The facility is the fifth of INSEE Vietnam in the country, after those in Cat Lai, Thi Vai, Hiep Phuoc, and Nhon Trach, all in the southern region. Besides, the firm operates the Hon Chong cement factory in Kien Giang, also a southern province.
The firm made its official entrance to the Southeast Asian nation in 2017 after changing the brand from Holcim Vietnam to INSEE Vietnam, per the acquisition of a 65% stake from Swiss firm LafargeHolcim in Holcim Vietnam for over $580 million in 2016.
The cement market in Vietnam has experienced a glut recently with a total supply of 120.7 million tons, nearly double the total demand of 64.5-65.5 million tons.
Vietnam earned $1.1 billion from exporting 24.75 million tons of cement and clinker in the first three quarters of this year, down 25.6% year-on-year in volume and 13.7% in value, according to the Ministry of Construction's Building Materials Department.