Construction kicked off on Sept. 7 on northern Bac Kan province's first high-tech Medium Density Fibreboard (MDF) plant in Cho Moi district.

The plant will use the most modern continuous pressing technology from Europe .

At the groundbreaking ceremony, Deputy Prime Minister Nguyen Xuan Phuc highlighted the project's importance because of the province's vast acreage of forest.

Phuc said the plant – a joint venture by Sai Gon Industry Corporation, Bac Kan Forestry Company and Sai Gon-Indochina Real Estate Company – would boost social security, create jobs and increase workers' incomes.

He urged the provincial authorities to strictly implement afforestation programmes.

The 1.1 trillion VND (53 million USD) plant will be able to produce annually 108,000 cubic metres of MDF products from 180,000 cubic metres of wood.

MDF, a type of hardboard, is made from wood fibres glued together under great heat and pressure. It is primarily used in mass-produced furniture.

The plant will create jobs for hundreds thousands of labourers and contribute 500 billion VND (24 million USD) to the province's annual budget.

The plant is expected to become operational by the third quarter of 2013.

Hoang Ngoc Duong, chairman of the provincial People's Committee, said the province would provide favourable conditions for enterprises that used forestry products.

Meanwhile, Vu Duc Dung, chairman of the Sahabak Company, asked the province to implement studies on high capacity processing plants and to improve road infrastructure.

The province has 10,000ha of forest covering five districts.

It has invested 175 billion VND (8.4 million USD) in exploiting forestry products./.