Sai Gon Quy Nhon Mining Co (SQC) will seek shareholder approval to suspend its listing on the Hanoi Stock Exchange due to unfavourable business conditions.
The company's general director, Tran Trieu Thanh, told a press conference on Oct. 11 that production at the plant has been suspended due to the imposition of high export taxes.
The company operates the Sai Gon Quy Nhon titanium slag plant, the first plant in Vietnam to produce titanium slag at a purity of 93 percent.
The export tax levied on titanium slag is currently 15 percent – down from an earlier 18 percent but still too high for the company's exports to remain competitive.
To cope with the high tarriff and attempt to cut its losses, Sai Gon Quy Nhon Mining Co began reducing capacity at the plant in July this year, Thanh said.
Suspending the loss-making slag production operations entirely actually would improve the company's bottom line, Thanh said, hinting that production could resume in the first quarter of 2011, when tarriff changes could be possible.
Meanwhile, the suspended operations are having a negative impact on share value, prompting the management's decision to de-list, pending shareholder approval.
The company's leading shareholder, Dang Thanh Tam, said the blue-chip shares had a large impact on movements of the HNX-Index.
In response to the concerns of small shareholders, Tam said, the company's management board plans to buy back shares from any investors that no longer wish to invest in the company.
Changes in tarriff policies would be decisive as to how long the listing would be suspended, Thanh said.
"I believe the State will soon realise our difficulties and make proper changes to support our production," he added./.
The company's general director, Tran Trieu Thanh, told a press conference on Oct. 11 that production at the plant has been suspended due to the imposition of high export taxes.
The company operates the Sai Gon Quy Nhon titanium slag plant, the first plant in Vietnam to produce titanium slag at a purity of 93 percent.
The export tax levied on titanium slag is currently 15 percent – down from an earlier 18 percent but still too high for the company's exports to remain competitive.
To cope with the high tarriff and attempt to cut its losses, Sai Gon Quy Nhon Mining Co began reducing capacity at the plant in July this year, Thanh said.
Suspending the loss-making slag production operations entirely actually would improve the company's bottom line, Thanh said, hinting that production could resume in the first quarter of 2011, when tarriff changes could be possible.
Meanwhile, the suspended operations are having a negative impact on share value, prompting the management's decision to de-list, pending shareholder approval.
The company's leading shareholder, Dang Thanh Tam, said the blue-chip shares had a large impact on movements of the HNX-Index.
In response to the concerns of small shareholders, Tam said, the company's management board plans to buy back shares from any investors that no longer wish to invest in the company.
Changes in tarriff policies would be decisive as to how long the listing would be suspended, Thanh said.
"I believe the State will soon realise our difficulties and make proper changes to support our production," he added./.
