Sai Gon Quy Nhon Mining Co (SQC) will seek shareholder approval tosuspend its listing on the Hanoi Stock Exchange due to unfavourablebusiness conditions.
The company's general director,Tran Trieu Thanh, told a press conference on Oct. 11 that productionat the plant has been suspended due to the imposition of high exporttaxes.
The company operates the Sai Gon Quy Nhontitanium slag plant, the first plant in Vietnam to produce titaniumslag at a purity of 93 percent.
The export taxlevied on titanium slag is currently 15 percent – down from an earlier18 percent but still too high for the company's exports to remaincompetitive.
To cope with the high tarriff andattempt to cut its losses, Sai Gon Quy Nhon Mining Co began reducingcapacity at the plant in July this year, Thanh said.
Suspending the loss-making slag production operations entirely actuallywould improve the company's bottom line, Thanh said, hinting thatproduction could resume in the first quarter of 2011, when tarriffchanges could be possible.
Meanwhile, the suspendedoperations are having a negative impact on share value, prompting themanagement's decision to de-list, pending shareholder approval.
The company's leading shareholder, Dang Thanh Tam, said the blue-chipshares had a large impact on movements of the HNX-Index.
In response to the concerns of small shareholders, Tam said, thecompany's management board plans to buy back shares from any investorsthat 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 productionat the plant has been suspended due to the imposition of high exporttaxes.
The company operates the Sai Gon Quy Nhontitanium slag plant, the first plant in Vietnam to produce titaniumslag at a purity of 93 percent.
The export taxlevied on titanium slag is currently 15 percent – down from an earlier18 percent but still too high for the company's exports to remaincompetitive.
To cope with the high tarriff andattempt to cut its losses, Sai Gon Quy Nhon Mining Co began reducingcapacity at the plant in July this year, Thanh said.
Suspending the loss-making slag production operations entirely actuallywould improve the company's bottom line, Thanh said, hinting thatproduction could resume in the first quarter of 2011, when tarriffchanges could be possible.
Meanwhile, the suspendedoperations are having a negative impact on share value, prompting themanagement's decision to de-list, pending shareholder approval.
The company's leading shareholder, Dang Thanh Tam, said the blue-chipshares had a large impact on movements of the HNX-Index.
In response to the concerns of small shareholders, Tam said, thecompany's management board plans to buy back shares from any investorsthat 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./.
