A major wood processing factory of Vietnam’s TH Group was inaugurated in the industrial park of Nghia Dan district, central Nghe An province, on September 3.

Politburo member and Deputy Prime Minister Vuong Dinh Hue attended the inaugural ceremony.

The factory, constructed from February 2013 with the consultation of Bac A Bank, is part of a USD-300-million project on building a wood processing factory and sustainably developing forests in Nghe An.

Deputy Prime Minister Vuong Dinh Hue (front, third from right) and other delegates visit the factory

During phase I of the project, about USD 100 million was spent on building wood slat and medium-density fibreboard (MDF) processing lines. They have a respective capacity of 12,000 cubic meters and 130,000 cubic meters per year.

Phase II will have a total investment of USD 200 million to raise the lines’ output to 40,000 cubic meters and 400,000 cubic meters each year, respectively.

The factory is equipped with advanced and “green” technologies which allow its products to meet strict standards of the US, the EU and Japan for domestic sale and export.

It is hoped to generate a pre-tax profit of USD 7-8 million and pay around USD 2 million in tax for Nghe An every year.

Meanwhile, the May Forestry Joint Stock Company – the project’s direct investor – signed contracts with timber suppliers to ensure simultaneous afforestation, forest protection and sustainable exploitation.

Source: VNA