New fertilizer production plant in Vietnam
(Nov. 16, 2002) Norsk Hydro inaugurated a state-of-the-art, brand-new fertilizer plant in Vietnam's Ba Ria Vung Tau province on November 16.
The plant has an annual production capacity of 200,000 metric tonnes and is managed by Norsk Hydro's Vietnamese joint venture company, Hydro Agri Vietnam Ltd.
 FIELD TESTS: Norsk Hydro is conducting field tests in cooperation with agricultural extension centers and R&D institutions in a quest to determine the optimum level of fertilization and the correct dosage of plant nutrients in different parts of Vietnam. (Photo: Kåre Foss) |
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The facility includes a 10,000 square meter warehouse and is located on a five hectares site adjacent to the deep sea port of Baria Cerece. Hydro has a 20 per cent ownership in this growing transshipment centre for fertilizers. Currently, Hydro has captured a 16 per cent share of total fertilizer volumes imported into Vietnam.
"Norsk Hydro has been active in Vietnam during the last decade, and Hydro celebrates its 10 year anniversary this year. We have seen considerable expansion in our activities and are confident that it is time for us to grow further through this investment in production capacity and the development of a distribution network," says Arild Haugan, general director of Hydro Agri Vietnam.
Hydro Agri Vietnam was established in 1997 as a joint venture company between Norsk Hydro and the local partners Viet Ha and Thasimex.
"It is our intention to share Norsk Hydro's almost century-old fertilizer industry experience, 30 years of Asian experience, as well as our products and technical know-how with Vietnamese farmers. We aim to become an integral part of Vietnam's growing agricultural sector and to encourage the application of balanced fertilization among farmers in order to achieve optimum yield of the crops chosen. Presently, we are conducting field tests in cooperation with agricultural extension centers and R&D institutions in a quest to determine the optimum level of fertilization and the correct dosage of plant nutrients in different parts of Vietnam," says Haugan.
He points out that the bulk blending facility has allowed Hydro Agri Vietnam to offer a wide range of products and formulas which are customized for local markets. These plant nutrients range from speciality products in one-kilogram bags for the small farmers to panamax vessels for the big buyers. This flexibility enables the company to react rapidly to the changing farmers’ needs. So far, the company has registered over 30 formulas although it will begin with a limited selection during the initial phase of market entry.
"Norsk Hydro sells to more than 100 countries in the world, and we have perfected our distribution and marketing network worldwide over the years. We have complete control of our logistics cost and management, and of the total supply chain from production, shipment, storage and bagging, to the point of delivery to farmers. Therefore, we are able to guarantee the consistent and superior quality of our fertilizer products," adds Audun Sørbotten, president of Hydro Agri Asia, Norsk Hydro’s operational headquarters in the region.
"In addition to the warehouse at our plant, we have close to 100,000 metric tonnes of storage capacity at Baria Cerece which includes two bonded warehouses."
Sørbotten also points out that Norsk Hydro values the importance of local partnership and knowledge. "It is Norsk Hydro’s preferred business practice to work with local partners in order to provide relevant products and services to local farmers, and this is also the case in Vietnam."
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