PM urges speeding up restructuring project of Ninh Binh fertiliser company

The Ninh Binh Nitrogenous Fertiliser Co. Ltd. was established on November 18, 2011 with total charter capital of 2.5 trillion VND (106.86 million USD). Its total current assets now reach 8.88 trillion VND (379.91 million USD).

Since it began operations, the company's losses have increased and its accumulated losses now amount to 7.01 trillion VND (299.85 million USD), 2.8 times higher than its charter capital. In 2021, it had debts of 12 trillion VND. Therefore, the company and Vinachem have submitted to the Government, ministries and sectors a plan to restructure its debts.

Last year, the performance of the  plant saw much progress. It earned over 4 trillion VND in revenue, posting an increase of 229% from 2020.

In the first half of 2022, it earned over 2.5 trillion VND in revenue and made a profit of nearly 700 billion VND.

In 2022, it expects to produce 420,000 tonnes of urea, earn 5.5 trillion VND in revenue and nearly 1 trillion VND in profit, contribute nearly 200 billion VND to the state budget, and ensure an average monthly income of 10 million per capita for almost 1,000 employees.

Speaking at the working session, Prime Minister Pham Minh Chinh stressed that the Ninh Binh and Ha Bac fetilizer plants have many similarities such as the extended time of investment, great accumulated losses, the initial low capital; EPC contract disputes, and poor performance in business and production.

However, the PM also spoke highly of the Ninh Binh fertiliser company's efforts in balancing production and reducing losses in 2021 and in the first half of 2022.

PM Chinh asked the company to handle EPC contract disputes with the contractor, balance business and production to minisise losses, increase productivity, solve credit contracts, reduce prices of products and better handle environmental protection both in and outside the plant.

As for environmental pollution, the Ninh Binh Provincial People's Committee and the Ministry of Nature Resource and Environment need to re-evaluate the environment impacts.

The plant should pay more heed to creating stable job for 1,000 labourers with higher salary and to seek stable supply of coal, he added.

The PM asked the Committee for Management of State Capital at Enterprises, and Vinachem to complete the restructuring plan in August.

The PM also requested authorised agencies to continue clarifying and handling violations of the project.

Previously, PM Chinh inspected the production line of the Ninh Binh fertiliser plant.

Translated by Nguyen Thuy