Chemical boost powers growth at Nghi Sơn

Chemical boost powers growth at Nghi Sơn

This decision follows the company's strategy to expand production into new product lines to meet growing market demand while utilising by-products from the initial phase.

A worker checking products at a warehouse of Duc Giang Chemicals. — Photo ducgiangchem.vn

Duc Giang Chemicals Group has raised the total investment capital for its Nghi Sơn project to VNĐ2.9 trillion (US$110 million) as part of a strategic expansion into new product lines to meet rising market demand while making use of by-products from the initial phase.

The updated investment certificate for Project No.1 at the Duc Giang Chemicals Complex in Nghi Sơn outlines an increase in annual chemical production capacity by 75,500 tonnes. This will include 20,000 tonnes of potassium sulphate (K2SO4), 15,000 tonnes of hydrogen peroxide (H2O2) and 500 tonnes of pure chemicals, alongside a battery production capacity of 2 million kWh per year, equivalent to 40,000 tonnes.

To reflect new administrative boundaries, the project’s location has been revised to the Đồng Vàng Industrial Zone, sub-zone 15, within the Nghi Sơn Economic Zone in Trường Lâm Commune, Thanh Hóa Province.

The total investment for both phases has increased by VNĐ500 billion compared to the original plan, with the additional funds allocated for implementing Phase 2.

The first phase is expected to be completed and operational by the second quarter of 2026, while procedures for Phase 2 will begin in the third quarter of 2025, with operations slated to start by the fourth quarter of 2027.

The Duc Giang Chemicals Complex has a total investment of about VNĐ12 trillion divided into three phases.

The first phase started on February 17 in Thanh Hóa, covering an area of 30ha and designed for an annual capacity of 151,000 tonnes of chemicals. Subsequent phases include a PVC plant worth approximately VNĐ6 trillion and a 400,000-tonne soda plant with a projected investment of VNĐ3.6 trillion.

The company reported revenue of VNĐ5.7 trillion in the first half of 2025, up 16.7 per cent year-on-year and achieving 55 per cent of its annual target. Profit after tax reached VNĐ1.7 trillion, a 9 per cent increase, corresponding to 58 per cent of the yearly goal.

For the entire year of 2025, Duc Giang Chemicals targets revenue of nearly VNĐ10.4 trillion, reflecting a 5 per cent increase compared to 2024, while forecasting a 3.4 per cent decrease in profit after tax to VNĐ3 trillion.

As a result, it has completed 57.6 per cent of its annual profit target. 

Bizhub