According to Paper Age, Vietnamese Prime Minister Nguyen Tan Dung has ordered a stop to a multi-million-dollar pulp making plant in the southern province of Long An. The troubled operations of the mill, fueled by material disputes with local jute growers, is said to be the reason for this move.
Phuong Nam pulp mill was constructed by Tracodi, a subsidiary of the Transport Ministry-run CIENCO 6, under a VND2 trillion (US$94.34 million) investment funded by the state budget.
The mill broke ground in March 2006 in Long An, around 60km west of Ho Chi Minh City, and it was up and running a year later. The mill has a capacity of producing 100,000 tons of paper pulp from jute plants per year.
However, the mill had been producing well below its full capacity until 2009, when its operations were suspended for many reasons, including the conflicts with jute growers and machinery breakdowns.
