Tan A Dai Thanh Group kicked off the first phase of the Ströman Pipes and Fittings Southern Plant in the southern province of Long An on Saturday.

The US$70 million plant covers a 10ha area in Tan A Dai Thanh Industrial Zone and has a design capacity of 150,000 tonnes of products per year, aimed at supplying quickly plastic pipe products to customers in the southern provinces. It is equipped with infrastructure, machinery systems and production lines based on German standards. Besides, all production activities of the plant are strictly followed by the quality control procedures monitored by German experts.

In the first phase, the plant is expected to supply 70,000 tonnes of products per year to the market.

At the grand opening of the factory, Ströman Viet Nam Plastic Corporation and Germany’s KraussMaffei Group also signed the strategic co-operation and technology transfer contract to provide HDPE & PPR 630, HDPE & PPR 1200 and PVC 400 extrusion machine for the second phase of the plant, valued at 14.5 million euros ($17 million).

It is a part of the strategic co-operation and technology transfer contract signed in 2015 between the two sides, with a total investment of the pipe extrusion line system up to 50 million euros by 2020, when the Ströman Pipes and Fittings Southern Plant is completed.

Nguyen Anh Tu, general director of Stroman Viet Nam Plastic Corporation, said the operation of the factory was an important milestone marking the progressive expansion and development of the Tan A Dai Thanh Group’s strategic direction. The operation of the plant will enable consumers in the southern provinces to quickly and conveniently use plastic pipe products in accordance with German quality standards, which are sustainable, safe and environment-friendly. — VNS