Dong A Plastic JSC to start operation of expanded plastic profile plant in June
Dong A Plastic JSC to start operation of expanded plastic profile plant in June
Dong A Plastic JSC (HoSE: DAG) is going to start operation of phase 1 of its VND400 billion ($18 million) expanded plastic profile plant manufacturing plant in the northern province of Ha Nam this June.
In the first phase, the company invested in 30 production lines made by Austrian company Theysohn to triple the plant’s capacity to 50,000 tonnes of products per year. As such, DAG will become the biggest Vietnamese producer of plastic profile in terms of capacity.
DAG hopes that with this project it’s going to become the biggest in terms of market share in Vietnam in plastic profile, gaining the market back from plastic profile imported from China.
DAG is one of the first Vietnamese companies to produce plastic profile, which it considers its focus, besides DAG’s smart windows, mica sheets and PP sheets. In 2013 DAG issued VND53.5 billion ($2.4 million) worth of convertible bonds, VND 40 billion ($1.8 million) of which to Japan South East Asia Growth Fund L.P, and VND13.5 billion ($605,000) of which to joint venture Shide Vietnam. The company used the bond sales proceeds to increase its profile production capacity to 2.5 times as much. In 2015 it signed the agreement to distribute uPVC plastic trims of the Shide Profile brand.
DAG targets to reach annual revenue of VND3 trillion ($135 million) in five years.
In 2015 the company issued 20.9 million shares to the public to mobilise capital for expansion. It’s also looking for a foreign strategic investor. At end-2015, Japanese company RISA Partners Inc., which focuses on investment in real estate, expressed interest in becoming a strategic investor in DAG. In March of this year, through Saigon Securities Inc., DAG met with seven funds namely Dragon Capital, Vietnam Holding, Vietfund Management, Korea Investment, Thien Viet Asset Management, Manulife Asset Management on possible cooperation. It has also worked with Japanese fund DBJ and Japanese building material company Sankyo Tateyama, which is planning to help DAG in product development and introduce Japanese technology in the company.
In the second quarter of 2016 DAG started the project to build the 56-hectare VND40 billion ($1.8 million) Water Resources University in Pho Hien, Hung Yen. The project is going to be finished in June 2016.
