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DUCGIANG CHEMICALS GROUP JOINT STOCK COMPANY

DUCGIANG CHEMICALS GROUP JOINT STOCK COMPANY


Project Description

OVERVIEW

Ducgiang Chemicals Group Joint Stock Company (DGC), formerly known as Duc Giang Chemicals Company, was established in 1963. The Company has its main business in production and trading of chemical products and materials. Their main products include yellow phosphorus, detergents and basic chemicals. DGC plans to expand into agriculture chemicals products and fertilizer. Not only DGC is a well-known brand in Vietnam market with over 50-year experience, but also DGC products have been exported to many countries such as Japan, Korea, Taiwan, India. Some of key customers include Toyotatushu, Sumimoto, Mitsubishi. DGC has been listed and traded on Hochiminh Stock Exchange (HOSE) since July 2020.

MAIN BUSINESS

  • Producing and trading of chemical products and materials such as yellow phosphorus, detergents
  • Producing and trading other basic chemicals.

MARKET POSITION

  • Ducgiang Chemicals & Detergent Powder Joint Stock Company has the 50 year experience in Vietnam market. Duc Giang Chemicals is a well-known brand in the market.
  • The Company possesses a chemical manufacture complex including 4 plants with a total invested capital of more than VND 2,000 billion, located in Tang Loong Industrial zone in Lao Cai Province. Of 4 plants, the Company owns a phosphoric acid manufacture plant with capacity of 160,000 tonnes/year and a dicalcium phosphate, manufacture plant with capacity of 50,000 tonnes/year.
  • Some technology lines provided by United Nations still remains well-performed. Besides, the company has invested in some advanced production line such as detergents production lines with capacity of 24,000 tons/year, LAS production line with capaicty of 12,000 tons/year and H3PO4 production line with capacity of 10,600 tons/year.
  • Ducgiang products have been exported to many countries such as Japan, Korea, Taiwan, India. The company traditional customers include Toyotatushu, Sumimoto.

GROWTH STRATEGY

  • Focus on developing phosphorus products such as TSP (Triple superphosphate), DCP (Dicalcium phosphate), and WPA (Wet process phosphoric acid).
  • For long-term strategy, DGC plans to expand into agricultural chemicals products and fertilizer.
  • Continue to implement the ongoing projects including Real Estate Project in Duc Giang; Apatite ore Exploitation Project at Khai Truong 25; Project on manufacturing NPK chemical fertilizers.
  • Implementing the Duc Giang – Nghi Son Chemical Complex Project in Nghi Son Industrial Park, Thanh Hoa Province. The project is divided into 3 phases from 2020 to 2026.

PROSPECTIVES

  • The sector profit is stable without require high investment capital, rate of payback is quick (about 2 – 3 years).
  • TSP (Triple SuperPhosphate), DCP (DiCalcium Phosphate), and WPA (Wet process Phosphoric Acid) manufacturing factory project are in the testing phase. The project is expected to bring high profit when it officially comes into operation.
  • Basic chemicals market in Vietnam is a huge market that domestic supply cannot meet the demand, so that there are mainly imported products from China, Germany, France, USA.

RISK

  • DGC’s detergent products are under fierce competition with other international group such as Unilever and P&G. Other chemical products such as STPP, H3PO4… are also facing the severe competition from Chinese products.