Billion-dollar paper mill project shelved in Nghe An

(Baonghean.vn) - Nghe An Department of Planning and Investment has just issued a document advising the Provincial People's Committee to terminate the Tan Hong Pulp Factory Project with an investment of thousands of billions after 7 years of being shelved.

Tan Hong Paper Factory has been inactive for the past 7 years, causing difficulties for localities in the raw material area. Photo: Tuong Vi

It is known that Tan Hong Pulp Factory has a total investment capital of 1,255 billion VND. The production line is imported from China with a capacity of 45 thousand tons/year.

The planning of raw material areas for Tan Hong Pulp Factory was approved by Nghe An Provincial People's Committee in Decision No. 3226/QD.UBND.NN dated July 7, 2009 with a total joint venture area of ​​47,118.8 hectares and a total investment capital of 596 billion VND.

This planning is located in the districts: Tuong Duong (13,838.4 ha), Con Cuong (7,899.0 ha), Anh Son (4,559.5 ha), Thanh Chuong (11,757.2 ha), Tan Ky (9,064.7 ha).

After the Decision approving the planning of raw material areas, in 2010 the Company invested capital, seeds and techniques in joint ventures with local people to organize planting of 1,622.7 hectares in 3 districts of Con Cuong, Thanh Chuong and Anh Son. At the same time, the construction of the National Highway 7A factory in Chi Khe commune, Con Cuong district was carried out.

However, in 2011 and 2012, due to difficult production and business conditions, Tan Hong pulp factory did not purchase and process pulp, causing output congestion for many forest growers in Con Cuong and Anh Son. The company also did not invest in planting new forests, protecting and caring for existing forests in the planned districts.

In particular, since 2011, the Company has not implemented the items according to the approved planning, however, localities have not been able to plan other crops in the area planned for this factory.

Most of the factory's machinery has deteriorated. Photo: Tuong Vi.

On February 24, 2017, the Department of Planning and Investment held a working session with the Departments of Natural Resources and Environment, Construction, Agriculture and Rural Development, the Bank for Agriculture and Rural Development, Hong Ha Branch, the State Bank of Vietnam, Nghe An Branch, and the People's Committee of Con Cuong District. Regarding Tan Hong Import-Export Joint Stock Company, the Department of Planning and Investment could not send documents or contact them because the Company had ceased operations. The Nghe An Tax Department also said that the Company no longer declared taxes and had no revenue.

Based on the results of the meeting, the Department of Planning and Investment issued Document No. 574 dated March 20, 2017 to the Provincial People's Committee advising on terminating the Tan Hong Pulp Factory Project.

Chau Lan