Taiwan’s Innovgreen plans to invest US$1 billion in growing trees for paper production and building a pulp mill in central highlands Kon Tum province, the Vietnam Investment Review reported.
A company’s representative said it was working with authorities of the province on its plan to grow 130,000 hectares of forest, which is estimated to cost US$90 million.
“We are seeking for investment license from the local government to kick off the plan as soon as possible, particularly as the prime minister has prioritized Kon Tum for forestry development and pulp production,” the representative said.
According to Vietnam’s paper development program, the industry has targeted the production of 600,000 tons of pulp a year by 2010, double its current output of 300,000 tons. Presently, domestic output is able to meet 30 per cent of demand.
Innovgreen’s proposed plans for the province, its fourth project in Vietnam to date, will be a suitable replacement for a past project to plant 130,000 ha of forest and build a 260,000 ton pulp mill halted 3 years ago by the government.
At that time, the failure of the sate-owned Vietnam Paper Corporation or Vinapimex’s Kon Tum project was blamed on slow investment returns.
Vinapimex had to suspend the Kon Tum project in August 2001 because it was unable to mobilize more funds. The company’s reports showed that it pumped around VND7 billion (US$427,000) to clear a site for the construction of 260,000 ton pulp mill and planting 17,000ha of forest.
The company trained 200 employees who expected to work for the mill when it came into operation.
The Innovgreen representative said the firm will negotiate with Vinapimex for its 17,000 of forested land.
Last year, Innovgreen invested US$5 million in building a 14ha wood processing factory with total capacity of 400,000 tons of dried wood and 40,000cu.m of chips a year, in Nghi Son Industrial Zone, central Thanh Hoa province.
In Apr this year, it spent US$45 million planting 100,000ha of forest in northern Quang Ninh province.
Most recently, the Taiwanese company gained license for US$60 million project to grow 70,000ha of forest in central Nghe An province. (VIR)
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