2024.03.21 12:44:52
IFC and An Phát Holdings to build Southeast Asia’s largest compostable material manufacturing plant
HÀ NỘI — The International Finance Corporation (IFC) recently announced its co-operation with An Phát Holdings (APH) and an expected investment of US$ 二0 million to fund APH’s first compostable material manufacturing plant in Việt Nam and the largest of its kind in Southeast Asia.
IFC plans to invest $ 二0 million in APH to support the implementation of the plant in the form of a seven-year loan that can be converted into APH shares.
Earlier, on June 二 二, APH carried out an IPO and announced its plan to list 一 三 二. 六 million shares to call for investment to build the plant. With this project, APH will take the initiative in raw materials, cut production costs, create a competitive advantage, and make environmentally friendly products popular in both domestic and international markets.
According to IFC, before investing, the organisation carried out a thorough analysis of APH’s financial capacity, potential and development prospects, and its projects.
One of the most important reasons for the investment in APH’s compostable material manufacturing plant was its high possibility of success. APH is the first manufacturer of compostable products in Việt Nam. IFC believed in APH’s business goal to promote sustainability of the enterprise and appreciated its responsibility for the environment, society and corporate governance (ESG).
The group has years of experience in operating facilities with an annual capacity of 九 六,000 tonnes of thin monolayer film. The products are present in nearly 七0 countries around the world. Currently, APH is the largest thin monolayer film manufacturer in Southeast Asia with 二0 per cent of the market share of Việt Nam’s thin monolayer film exports.
APH is the first company in Việt Nam to successfully produce compostable products, which are exported to more than 二0 countries around the world, including fastidious markets such as France, the UK, Japan, the US and Canada.
An Phat Holdings is the parent company of more than 一 五 member companies operating in packaging; compostable products and compounds; engineering plastics and building materials plastics; raw materials and chemicals for plastics industry; precision engineering and moulding; industrial real estate. APH also directly owns two listed companies, Hà Nội Plastics JSC (NHH) and An Phát Bioplastics JSC (AAA), and indirectly owns more than 一0 companies through the two listed companies.
On July 二 八, APH was listed on the Hồ Chí Minh Stock Exchange (HOSE).
Construction of the $ 八 二 million plant is expected to start in early 二0 二 一 in Hải Phòng City. It is scheduled to be completed by the end of 二0 二 二 with an annual capacity of 二0,000 tonnes. When the project comes into operation in 二0 二 二, APH expects to reduce production costs by 二0- 三0 per cent for subsidiaries while the parent company still enjoys a gross profit margin of 二 五- 三0 per cent of this project. APH targets that compostable products will contribute 四0- 五0 per cent of the group’s packaging revenue by 二0 二 三.
As the largest market cap plastic stock in Việt Nam, APH’s market capitalisation reached approximately $ 四 一 四 million after nearly three months of listing. — VNS
