Viglacera Corporation announced and signed a contract to establish a joint venture manufacturing building materials in Cuba
After nearly 3 years of bringing Viglacera products into the Cuban market, researching and assessing the demand as well as the development orientation of Cuba, Central America and Caribe, Viglacera Corporation decided to invest in direct production of building materials in Cuba. With the support of the two governments of Vietnam and Cuba, the close co-operation of the Cuban partners, together with Viglacera's determination, the procedures for establishing the business have been completed. The ceremony of announcing and signing the contract to launch a joint venture manufacturing building materials between Viglacera and Cuban partners has been solemnly held in La Habana, Cuba.
President of Cuba Prodimat Company, Representative of Viglacera Corporation JSC – Mr. Ngo Trung Dung - Director of Viglacera Research and Development Institute signed the contract to launch the joint venture manufacturing building materials Sanvig in the presence of the leaders of the Republic of Cuba and the Viglacera Chairman – Mr. Luyen Cong Minh
Attending and witnessing the signing ceremony, on the Cuban side were Cuban Minister of Construction Rene Antonio Mesa Villafana and representatives of the Ministry of Foreign Trade and Foreign Investment, Ministry of Labor, Ministry of Justice, Cuban Chamber of Commerce and Industry, Geicon Construction Materials Group. On the Vietnamese side, there were Mr. Luyen Cong Minh, Viglacera Chairman, Viglacera officials and employees working in Cuba.
At the ceremony, representatives of the Notary Public, Cuban Ministry of Justice announced the document establishing a joint venture company named SANVIG. Sanvig is a joint venture between Viglacera Corporation and Prodimat Corporation of Cuban Construction Material Company (Geicon) of the Cuban Ministry of Construction with a 50/50 equity contribution, of which Cuba contributes equity of assets and land of two ceramic tile factories in Santa Cruz and a sanitary wares factory in San Jose and the Vietnamese side contributes money, technology, machinery and equipment.
The project has total investment of US $ 59.7 million and chartered capital of US $ 39.86 million. In the first phase, the joint venture will focus on renovating and upgrading existing two ceramic tiles factories to improve productivity, quality, change the product design in order to meet the designed capacity of 3 million square meters of tiles and 150 thousand sanitary ware products per year. Then in the second phase, the joint venture will invest in a brick factory with a capacity of 3 million square meters per year and a sanitary ware factory with a capacity of 500,000 products per year.
The duration of the joint venture’s operation is 15 years. In the first term, Vietnamese side will assume the position of Chairman of the Board and direct the restoration and renovation of two tiles factories, conduct the training and technology transfer to effectively operate the joint venture.
After the announcement, the two sides signed an international economic cooperation contract (joint venture contract) as a legal basis for establishing a joint venture.
The SANVIG Joint venture company in Cuba opens the door for Viglacera's investment in Cuba. At this point, Viglacera will continue to invest in industrial parks in Mariel Special Zone, a joint venture to build and renovate hotel management in La Habana.
Viglacera's investment in Cuba will be a prerequisite for other domestic and foreign businesses to continue investing here, contributing to the development of Cuban industry and economy. SAVIG joint venture is the most practical milestone of promoting the tradition of solidarity and special relationship between the Government and people of Vietnam - Cuba.
