Hardie needs more fibre Australia's James Hardie Industries is contemplating spending a total of US$120 million to build a fifth fibre cement plant in the United States and a similar operation in Indonesia, according to Nationwide News in Australia.

Managing Director Dr. Keith Barton said that if a board decision was reached to approve funding for another U.S. plant, construction would take another three years. However, the total U.S. fibre cement market was "expected to double to 16% of the market for all housing materials within five years," he added.

The managing director went on to say that the company was encouraged by its study of "plywood replacement strategy" for Indonesia and that it had some belief that the Asian economies would bounce back in a few years.

Dr. Barton's comments came after James Hardie reported a 63% leap in net profit after abnormals to US$24 million for the six months to Sept. 30.

Upping the ante in China The introduction of a new kiln line at the plant of Guangdong Yingde Cement in China has resulted in an increase in clinker production of more than 1,750 mtpd, according to the line supplier KHD Humbolt Wedag AG.

The new line, operated by the semi-wet process, is the first step in a production upgrade with the specific intention of minimizing energy consumption at the plant, some 150 km south of Guangzhou (Canton), which currently produces 600,000 mt of clinker per year.

A second production line, also to be operated by the semi-wet process, is currently under construction.

Vietnamese expansion With Vietnam's first joint-venture cement plant now up and running, new investors, including Taiwanese, Koreans, and Thais, are now scrambling for a foothold in the industry, according to a report in the Bangkok Post.

Chinfon Haiphong Cement Corp., in which Taiwan's Chinfon Group holds a 70% interest, began production in the northern port city of Haiphong in mid-May after three months of tests.

The US$288 million plant, the first foreign-invested operational cement plant in the country, was expected to produce 1.2 million mt in 1997 and will increase capacity to 1.5 million mt this year.

Several foreign investors are now said to be in the wings, basing their decisions on official forecasts of demand, which analysts claim have been exaggerated by as much as 600,000 mt.

According to the Vietnam Cement Association, total demand this year will be between 9.5 million and 10 million mt; however, revised figures from industry sources show demand of 9.4 million mt.

Ssangyong Cement Industrial, Korea's biggest cement manufacturer, recently withdrew its 35% stake from a US$250 million project signed in May 1996 with another Korean partner, Hanjung, and two local partners, state-owned Vinacoal and the Quang Ninh People's Committee.

S.A.S. Group, a Thai company, has selected the same area, Quang Ninh, for its US$237 million project to produce 1.4 million mt of cement per year. The joint-venture contract signing was held during Prime Minister Chavalit Yongchaiyudh's visit to Hanoi recently and, if approved, the venture will be operational by the end of 2000.

Meanwhile, no progress has been seen in the Phuc Son cement project, a Taiwanese investment in the northern province of Hai Duong. It was licensed in 1996 to produce 1.8 million mtpy.

USG in Chinese venture USG Corp. has announced the formation of a joint venture with a Chinese company to make ceiling grids in China, according to a report in The Wall Street Journal.

The building products maker said its partner will be Zhongbei Building Material Products Co., a leading grid manufacturer based in Shenzen. USG said it would acquire a 60% interest in Zhongbei but did not disclose any financial terms.

Siam looks overseas The Siam Cement Group is aiming to double its exports sales to US$1.9 billion to offset sluggish domestic market conditions, Executive Vice President Tawee Butsuntorn said recently.

Export sales in 1998 should account for 30% of the group's total sales. For 1997, they were expected to rise 5% compared to 1996 figures to US$950 million, or 15% of total sales.

Tawee said the group would operate at full capacity any plants that made products with good export potential. Export of Siam Cement products are handled by Siam Cement Trading Co.