Deputy Prime Minister Vuong Dinh Hue (front, third from right) and other delegates visit the factory (Photo: VNA)

Nghe An (VNA) – A major wood processing factory of Vietnam’s TH Group was inaugurated in the industrial park of Nghia Dan district, central Nghe An province, on September 3.

Politburo member and Deputy Prime Minister Vuong Dinh Hue attended the inaugural ceremony.

The factory, constructed from February 2013 with the consultation of Bac A Bank, is part of a 300- million-USD project on building a wood processing factory and sustainably developing forests in Nghe An.

During phase I of the project, about 100 million USD was spent on building wood slat and medium-density fibreboard (MDF) processing lines. They have a respective capacity of 12,000 cubic metres and 130,000 cubic metres per year.

Phase II will have a total investment of 200 million USD to raise the lines’ output to 40,000 cubic metres and 400,000 cubic metres each year, respectively.

The factory is equipped with advanced and “green” technologies which allow its products to meet strict standards of the US, the EU and Japan for domestic sale and export.

It is hoped to generate a pre-tax profit of 7-8 million USD and pay around 2 million USD in tax for Nghe An every year.

Meanwhile, the May Forestry Joint Stock Company – the project’s direct investor – signed contracts with timber suppliers to ensure simultaneous afforestation, forest protection and sustainable exploitation.-VNA