Tunnel kiln brick factories are facing production bottlenecks, with many operating at reduced capacity.
(Baonghean.vn) - Since the beginning of the year, a series of brick factories in Nghe An province have faced difficulties in selling their products. Many tunnel kiln brick factories have large quantities of unsold bricks and are operating at a reduced capacity.
Visiting the Tan Ky Tunnel Brick Factory in Ky Son commune, we witnessed long rows of bricks piled haphazardly, spilling out onto the gate, but no trucks came to buy them. Mr. Nguyen Van Tam, the factory director, said: "While at this time last year, the factory sold about 4-5 million bricks, and even experienced shortages at times, this year sales are very slow. We have a large amount of bricks in stock, and some days we don't sell a single truckload."
“The reason bricks aren't selling well is because since the beginning of 2023, construction projects for private homes and state-funded projects have been slow, resulting in sluggish sales. Sales are less than half of what they were during the same period last year. Currently, the factory has over 10 million bricks in stock, and in recent months, we've had to cut back on labor, operating at a reduced capacity…,” added the Director of Tan Ky Tunnel Brick Factory.
Another brick factory in Nghia Dung commune, Tan Ky district, is also in a bleak situation. A representative from the factory in Nghia Dung commune shared: "Every year during the construction season, at peak times, workers have to work overtime. But since the beginning of this year, we've been producing bricks but haven't been able to sell them, and we have nearly 10 million bricks in inventory. With the rainy season starting, production and sales will become even more difficult, and the factory hasn't yet found a solution."
According to our research, two brick factories in Yen Thanh district are also struggling with sales. Mr. Nguyen Ba Duc, Director of the Yen Thanh Tunnel Brick Factory, shared: The factory has an operating capacity of 20 million bricks per year, providing stable employment for over 100 workers. The period after the Lunar New Year is usually considered the "golden season" for construction, as many public and private investment projects are started. However, since the beginning of the year, brick sales have been very slow, with over 5 million bricks currently in storage. Since the beginning of July 2023, the factory has decided to halt production for extended repairs and to sell off the remaining stock.
Currently, many tunnel kiln brick factories in Nghe An are operating at a reduced capacity to retain their workforce, because if workers quit, it will be very difficult to find replacements when the brick market recovers. According to a report from the Department of Industry and Trade, Nghe An currently has 27 tunnel kiln brick factories, distributed across 12 districts and towns, including Tan Ky, Thanh Chuong, Yen Thanh, Nam Dan, and Hung Nguyen districts, with a total designed capacity of over 700 million bricks per year. Since the beginning of 2023, due to difficulties in sales, these factories have an inventory of approximately 55-60 million tunnel kiln bricks.
Mr. Nguyen Van Hiep, Head of the Industrial Management Department (Department of Industry and Trade), also stated: The difficult situation in exporting tunnel kiln fired bricks is expected to continue. The Department of Industry and Trade advises businesses in this sector to closely monitor the market situation and proactively find flexible solutions to respond. At the same time, they should innovate management methods, improve management capacity, and boldly invest in changing production technology to save costs, lower prices, and improve product quality…
In the long term, businesses need to gradually plan their transformation, focusing on investing in and producing non-fired bricks, as the government is encouraging the use of non-fired bricks in construction projects, and this alternative material is a suitable trend for sustainable development.