$300 million green factory in Western Nghe An

(Baonghean) - After more than 3 years of urgent investment and construction, Nghe An Wood Processing Factory has officially come into operation. The operation of such a modern, regional-scale wood processing factory has officially opened up great opportunities for the forestry industry, while actively contributing to turning the potential and strengths of the Western forest land into development advantages for Nghe An province.

Nghe An provincial leaders inspect the construction progress of Nghe An Wood Processing Factory. Photo: Canh Nam

Large scale investment, modern technology

The MDF wood and fiberboard processing factory project of May Forestry Joint Stock Company started construction in February 2013 on an area of ​​40 hectares in Nghia Dan Industrial Park. It must be affirmed that this is the largest fiberboard processing project in Vietnam using the most modern processing technology up to this point.

With the consultancy and investment of North Asia Commercial Joint Stock Bank, Nghe An Wood Processing Factory Project is built within the framework of the project "Wood processing factory and sustainable forest development in Nghe An" with a total investment of 300 million USD (not including investment capital for sustainable raw material development area) divided into 2 phases.

Mr. Christoph Ludaescher - Director of Nghe An Wood Processing Factory: Our factory is a modern factory with European technology and is imported from famous equipment units from Germany and Sweden such as Valmet, Dieffenbacher, Anthon, Intec. The closed, automated process includes peeling, chopping, grinding, glue mixing, shaping, pressing and cutting to size and synchronous joints... Compared to existing MDF factories in Vietnam, I think we have many advantages in technology and equipment. In terms of environment, this is an environmentally friendly factory, strictly complying with European environmental standards. The factory has a modern dust extraction and exhaust gas filtration system, whereby dust is sucked to the power station to get heat for the production process. Therefore, it can be affirmed that our factory is a green and environmentally friendly factory.

Phase I with a total investment of more than 100 million USD includes 2 production lines, a wood bar processing line with a capacity of 12,000 m3/year and an MDF fiberboard processing line with a capacity of 130,000 m3/year. Phase 2 will increase the total capacity of the wood bar factory to 40,000 m3/year and the MDF wood factory to 400,000 m3/year with a total investment of 200 million USD.

Thanks to the investor's selection of the best technology and equipment suppliers in the world, the factory's products meet international quality standards and are competitive in demanding markets such as the US, Japan, and the EU. At the same time, with the advantage of using the most modern technology in Europe, the wood processing stages are completely automated from the input of raw materials to the finished product stage. Moreover, by applying high technology, it is possible to utilize all parts of the trunk, branches, and roots to process wood, with the remaining parts such as sawdust being used as fuel to create energy, which will contribute to reducing costs for businesses and not polluting the environment.

Strategic vision

Large scale investment and modern technology have affirmed the superiority of Nghe An Wood Processing Factory. However, what the investor is particularly interested in is to closely coordinate with localities, build a sustainable raw material area with enough raw material sources for the first phase of the factory and prepare a raw material source solution for the second phase of the project investment. On the side of May Forestry Joint Stock Company, it has also completed working with localities and partners in the planned raw material areas to carry out the work of connecting to plan afforestation and sign contracts to purchase raw materials.

Panoramic view of Nghe An Wood Factory from above. Photo: Duc Anh

In addition to the two professional affiliated companies taking care of developing raw material areas: TH Raw Material Development Investment Joint Stock Company in the Northeast (Dong Bac Company) organizes planting and purchasing raw materials in the area of ​​4 districts and towns: Hoang Mai, Yen Thanh, Tan Ky and Do Luong; TH Raw Material Development Investment Joint Stock Company in the Phu Quy area (Phu Quy Company), May Forestry Joint Stock Company has also coordinated with the Forest Protection Management Boards and forestry companies in the areas of Yen Thanh, Thanh Chuong, Tan Ky, Anh Son, Con Cuong (Tuong Duong) districts... to act as the focal point for purchasing raw materials.

Currently, on the raw material area of ​​the company approved by the People's Committee of Nghe An province according to Decision No. 4212/QD-UBND dated September 20, 2013, the expected area of ​​the factory to be rented is 11,589 hectares and the area of ​​joint venture land is: 33,422 hectares. For the rented area of ​​more than 10,000 hectares within the scope of the 2 units, the company has carried out new planting since 2015 on the area recovered from the Youth Union 6 - XDKT, at the same time applying the mechanism of lending initial investment capital, implementing new planting simultaneously on the planned area.

In addition to the area planned by the People's Committee of Nghe An province, May Forestry Joint Stock Company is continuing to work with districts outside the planning area such as Tuong Duong, Con Cuong, Que Phong... to survey the actual area of ​​existing forest land, propose to the Provincial People's Committee to expand the planning area, and implement investment support policies for people to plant forests.

Mr. Nguyen Van Hai - Chairman of Tuong Duong District People's Committee said: "Tuong Duong District leaders have had 3 working sessions with May Forestry Joint Stock Company and sent 2 working delegations to visit the factory and we realized that this is a wood processing project with a very large investment scale, advanced and modern technology, so Tuong Duong has great confidence in the factory. Currently, we are submitting to the Provincial People's Committee to reclaim 13,838 hectares planned for Tan Hong Paper Factory and review the planning and area to increase the maximum area that can be planted with concentrated raw material forests to supplement the planning for Nghe An Wood Processing Factory".

Mr. Nguyen Cong Vinh - General Director of May Forestry Joint Stock Company affirmed: "Our goal is not only to create enough raw materials for the factory's processing capacity but also to ensure sustainable development for the wood growing raw material area in Western Nghe An. The solution to ensure varieties, planting techniques, and proper care that we apply not only standardizes the input raw material source, but also improves the efficiency of forestry, helping people in the raw material area get richer from forestry."

Building trust and accompanying people in raw material areas

To ensure a sustainable source of raw materials for the factory when the two production lines officially come into operation as well as the process of increasing the capacity of phase 2, May Forestry Joint Stock Company has issued "Policy on purchasing raw wood materials and organizing forest planting on planned land to provide raw materials for Nghe An Wood Processing Factory" (No. 90/CV/2016/MF JSC dated April 1, 2016).

Foreign experts and domestic engineers are operating the MDF production line at the central control room. Photo: Huu Nghia

Accordingly, the policy of planting raw material forests in the planning area, the company implements for households to advance without bank interest the following amounts: money for seedlings, fertilizers, termite killers, support for investment in technical design, agricultural extension for forest growers and households commit to sell 100% of products to the factory after harvest according to the market mechanism at the time of sale. At the same time, support for compensation for raw material purchase price from 80 km or more 3% and 120 km or more 5% of the purchase price at the factory gate.

This support amount must be paid by Party B (the buyer) to the forest growers who sell wood to Party B with the aim of increasing income for forest growers in remote areas. The payment mechanism according to the notice is also flexible, because the factory commits to pay through the customer's account within 10 hours from the time of importing wood if the customer has an account, and will pay in cash within 1 day from the time of importing wood.

Mr. Nguyen Cong Vinh - General Director of May Forestry Joint Stock Companyconfirm: "Along with the preparation to put the MDF wood processing line phase 1 into operation, the company is planning to implement phase 2 for MDF from 130,000 m3/year to 400,000 m3/year, so the raw material issue for the factory is a very large and urgent need. Therefore, we always accompany and share with the people in the raw material area, hoping that the localities, forestry units and people will become strategic partners, with the same goal of exploiting the forest land resources of the West and truly getting rich from the forestry profession".

The factory's policies and mechanisms have created joy and excitement among the people in the Thanh Ha commune raw material area when the people in the key wood material area of ​​Thanh Chuong prepare to plant forests in the autumn season. Taking us to visit the 7-hectare model of planting acacia seeds according to the new technical process for more than a year but already exceeding the per capita, Mr. Nguyen Van Ly, hamlet 8B said: "I am very happy to know the policy mechanism to support planting and the raw material purchasing policy of Nghe An Wood Processing Factory. In the future, with the factory's mechanism, I will apply to plant nearly 20 hectares of the remaining to create a large source of raw materials and higher income value on this forest area".

The factory's raw material forest is being prepared for exploitation. Photo: Huu Nghia

Thus, it can be said that with synchronous solutions from investment in forest planting to commitment to purchase all products, it has shown the professionalism, building trust and accompanying the forest growers in the Western region of Nghe An Wood Processing Factory.

Huu Nghia