Matexim: Creating Driving Force for Industrial Development

Material and Complete Equipment Export - Import Corporation (Matexim) - a member of the State-owned Vietnam Engine Agricultural Machinery Corporation (VEAM) - was established in 1969. After more than 40 years of construction and development, Matexim has constantly boosted up its internal resources. At present, the company has 10 member companies operating across the country. Its total annual revenue amounts to hundreds of millions of US dollars and export revenue reaches US$40 - 50 million. With its huge potential, when it invested in Bac Kan, Matexim was expected to change the face of local industry.

 

General Director Tran Quoc Hung said Matexim’s investment in Bac Kan province is like a predestination. It originated from the sincere affection and esteem of provincial leaders plus untapped potentials. Matexim was determined to make synchronous, sustainable investment in Bac Kan province. Mr Hoang Ngoc Duong, Chairman of Provincial People’s Committee, said: Bac Kan is a difficult province. To create resilience, Bac Kan needs responsible and visionary investors. Since its presence in Bac Kan, Matexim has all those qualities.

 

Investing in a very poor locality, Matexim defines to make a well-oriented investment. In the past five years, the company has strongly in restructured its investment projects and attained significant success in mining and mineral processing in Bac Kan province.

 

As soon as it was licensed a low-quality iron ore, with 25 - 30 percent of iron, the company invested over VND100 billion to build iron ore grinding and refining mill with an annual output of 200,000 tonnes of 65 percent iron in Ban Cuon 1 and Ban Quan iron ores. This facility supplies ores for Bac Kan sponge iron plant with a yearly production of 100,000 tonnes in Thanh Binh Industrial Park, Cho Moi District to serve high-quality steel and alloy production. When the project goes into operation, it will create jobs for more than 300 local workers.

 

Matexim’s sponge iron plant in Thanh Binh Industrial Park cost VND549 billion for construction. The construction on the project has completed more than 80 percent. This facility is reported to have most modern technologies in Vietnam. Matexim sets a new trend in applying new technologies and opens a new era for the Vietnamese metallurgical industry.

 

Mr Ngo Quang Yen, Deputy General Director of Matexim, said: The world is mainly using two traditional steel production technologies: High-blast smelter and electric arc smelter. Besides, the world has two newly developed technologies: Smelting recovery - oxygen converting furnace - continuous casting and direct recovery - electric arc furnace - continuous casting. Matexim chose direct recovery technology (Midrex - non-metallurgical coke) to economise inputs, increases the efficiency of ore utilisation, and protect the environment.

 

The sponge iron plant project suits the Vietnamese steel industry development orientation in the 2007 - 2015 period. The company will try hard to bring the plant into operation in early 2012.

 

With modern technology, the project’s sponge iron products can compete with others on the market and supply materials for high-quality steel production.