Sapa Will Double Capacity of Joint Venture in Vietnam

The investment by Sapa Ben Thanh Aluminum Profiles for a second extrusion press and auxiliary equipment is expected to begin in mid-2015, with press operations scheduled one year later.

Sapa (Oslo, Norway) is doubling production at its joint venture in Vietnam to support the growing local demand of high-value extruded aluminum products and solutions.

The investment by Sapa Ben Thanh Aluminum Profiles Co., Ltd. (Sapa BTG; Ho Chi Minh City) is for a second extrusion press, including installation, building and construction, and auxiliary equipment. The new press will be larger than the current press in operation at the plant, thereby broadening the range of products that the company can deliver.

The joint venture expects to begin work on the expansion in mid-2015, with press operations scheduled to start one year later. The new facility will be built adjacent to the current plant.

Sapa BTG delivers aluminum solutions to customers in Vietnam and in other markets in Southeast Asia. The new capacity will be directed toward customers who require added-value services – the higher-end industrial segment is an example.

Sapa owns 65 percent of Sapa BTG, with Benthanh Group owning the remaining 35 percent. The company entered the joint venture in December of 2010. Since then, the partners have enjoyed good cooperation and successful operation with business growth and profitability. Benthanh Group is a state-owned company managing interests in commerce, real estate, tourism and industrial production.

“We anticipated future expansion at the outset of our partnership. Now we are realizing that step,” says Sapa’s president and chief executive officer, Svein Tore Holsether. “It’s important to grow and develop our operations in Asia, to support our position as the global leader in aluminum solutions.”

In addition to Vietnam, Sapa is present in Asia with operations in India and with three plants in China. Vietnam has a young population and a fast-growing economy. Aluminium consumption is growing in step with the country’s development.

“Our figures show that aluminium consumption in Vietnam has been increasing by 15 percent to 20 percent annually. It is used in many of our most important industries and industrial applications,” says Nguyen Van Thu, the president of the Vietnam Association of Mechanical Industry (VAMI).