Sapa is doubling production capacity at its joint venture in Vietnam to support the growing local demand of high-value extruded aluminium products and solutions.
The investment by Sapa Ben Thanh Aluminum Profiles Co., Ltd. (Sapa BTG) in Ho Chi Minh City covers a second extrusion press, including installation, building and construction, and auxiliary equipment. The new press will be larger than the current press in operation at the plant, thereby broadening the range of products that the company can deliver.
The joint venture expects to begin work on the expansion in mid-2015, with press operations scheduled to start one year later. The new facility will be built adjacent to the current plant.
Sapa BTG delivers aluminium solutions to customers in Vietnam and in other markets in Southeast Asia. The new capacity will be directed toward customers who require added- value services – the higher-end industrial segment is an example.
“More businesses in Vietnam are asking for better quality solutions from the local market. We want to keep our position as the preferred aluminium solutions supplier,” says Keith Jones, executive vice president responsible for Sapa’s extrusion operations in Asia.
Sapa owns 65% of Sapa BTG, with Benthanh Group owning the remaining 35%.
Sapa entered the joint venture in December 2010. Since then, the partners have enjoyed good cooperation and successful operation with business growth and profitability. Benthanh Group is a state-owned company managing interests in commerce, real estate, tourism and industrial production.
“We anticipated future expansion at the outset of our partnership. Now we are realising that step,” says Sapa’s President & CEO Svein Tore Holsether. “It’s important to grow and develop our operations in Asia, to support our position as the global leader in aluminium solutions.”
In addition to Vietnam, Sapa is present in Asia with operations in India and with three plants in China.
Vietnam has a young population and a fast-growing economy. Aluminium consumption is growing in step with the country’s development.
“Our figures show that aluminium consumption in Vietnam has been increasing by 15-20% annually. It is used in many of our most important industries and industrial applications,” says Nguyen Van Thu, president of the Vietnam Association of Mechanical Industry (VAMI).