Danish global machinery equipment maker DenimoTech and Vung Ro Petroleum Company Limited on Thursday signed an agreement to build a high-tech bitumen plant in the central coastal province of Phu Yen.

The construction of the plant will be divided into two phases. The first will be implemented in a year, and the second will begin in the middle of the year and last for 26-28 months.

During the first phase, the plant will import high quality bituminous binders from the world’s leading manufacturers and process them into advanced construction materials for both the Vietnamese market and exports to neighbouring countries.

The plant has been designed to have a storage capacity of 12,000 metric tonnes (MT) with a second phase upgrade to 30,000 MT. It is expected to be a top-notch environmentally-friendly bitumen-emulsion and polymer-modified bitumen plant. It will also be a state-of-the-art packing facility for exports of hi-tech bituminous products to regional markets. It will have its own port facility.

The plant is part of Vung Ro Petroleum’s attempt to produce its own high-quality bituminous binders compliant with Vietnamese Standards, American Superpave Performance Grade Standards and other standards required by customers in the region.

Kirill Korolev, CEO of Vung Ro Petroleum, believes that the project will contribute significantly to Viet Nam’s infrastructure development.

“The road, airport and port infrastructure of a country are barometres for its advancement, wealth and prosperity. We are proud to contribute to this development. We are selecting the world’s best technology providers to bring the best materials and science to the Vietnamese market,” Kirill said.

Vung Ro Petroleum’s CEO said he was not authorised to disclose the full amount of the investment, but said it was above US$500 million.

“Together with our partners, international vendors and some of the best scientists from Denmark, we will deliver a cutting-edge facility for Vung Ro Petroleum and help solve the engineering problems of Vietnamese construction and industrial sectors,” said Bernd Schmidt, chairman of DeminoTech. — VNS