Despite the global impact caused by Covid 19 pandemic and many economies continues to grapple with the devastating consequences. The global calcium carbonate market size is projected to reach USD 28,301.8 million by 2024, at a CAGR of 6.0% between 2019 and 2024. According to the report, the attractive opportunity in the calcium carbonate market come from:

Plastic to be the fastest-growing end-use industry of calcium carbonate during the forecast period.

CaCO3 is an indispensable material in the plastic industry. In terms of value, plastic is projected to be the fastest-growing end-use industry of calcium carbonate during the forecast period. This is due to the strong demand of the car industry. Accordingly, the polypropylene reinforced with CaCO3 will help enhance the properties of the plastic, while improving heat dissipation.

The demand for plastic in other industries such as packaging, construction and electronics industries has also increased significantly. These factors promote the explosive growth of global CaCo3 market.

Increasing demand from paper and plastic industries in APAC

Calcium carbonate is a critical raw material for paper and plastics. The economic growth witnessed in the developing countries of APAC has led to an increase in the use of paper packaging. China, India, and South Asian countries are the largest consumers of paper in the region.

Furthermore, the plastic industry in APAC is also growing at a fast rate. The region is witnessing a high demand for plastics for various applications in packaging, automotive, construction, electrical & electronics, and other industries. The increasing use of plastics in these industries for multiple purposes, such as decreasing costs in packaging and construction industries, reducing weight in automotive parts, and as an insulator in electronic products, is driving the demand for calcium carbonate in APAC.

CaCO3 has potential applications

Currently, calcium carbonate is majorly used in the paper, plastic, paints & coatings and adhesives & sealants industries. However, researchers are continuing to discover new applications of this material.  Studies are being conducted to implement these nanoparticles in therapeutic applications, including as an antibacterial agent, for gene delivery to target cancer cells, and for cancer drug delivery.

Calcium carbonate-based materials have biodegradable and biocompatible properties, which are ideal as a smart carrier to deliver genes, enzymes, and drugs. Developing compostable products has become an emerging global trend, therefore these factors present various opportunities for the growth of the calcium carbonate market in the future.

In Vietnam, An Tien Industries Joint Stock Company, a subsidiary of An Phat Holdings is the largest plastic additives manufacturer in Vietnam providing Ancal plastic additives, high-quality CaCo3 ultrafine stone powder, etc. With 2 factories capable of producing more than 200.000 tons per year, An Tien Industries’ products has been exporting to more than 62 countries, regions and territories. Recently, An Tien Industries was just ranked Number 1 among Top 500 Fastest Growing Enterprises in Vietnam in 2020.

An Phat Holdings – one of the few enterprises holdings the patent for manufacturing compostable materials and products has started implementing its plan to build AnBio compostable material manufacturing plant. The construction of the plant is expected to start at the beginning of 2021 at Hai Phong, with an 18-month construction period, completed by 2022, with a capacity of 20.000 tons per year and an investment amount of nearly VND 1.500 billion. In the future, An Phat Holdings aim to become the biggest high-tech bioplastic group in South East Asia.

The meeting summarized its business performance in 2019, approved the 2020 business plan and direction as well as reports related to the company’s management and operation activities.

Approving An Phat Bioplastics Joint Stock Company (An Phat Bioplastics – Ticker: AAA) for increasing its ownership to 65% with no public tender offer

The meeting approved An Phat Xanh Plastic JSC for increasing its ownership to 65% without requiring a public tender process.

AAA currently owns 51% of HII, equivalent to 51% of the company’s equity. In the long-term development plan, AAA continues to joint hands with HII to develop business and maintain its position as the No. 1 enterprise in Southeast Asia in terms of film packaging production.

Particularly, AAA purchases additional shares from existing shareholders of HII with no public tender offer.

2019 revenue reached VND 4,632 billion, exceeding nearly VND 1,700 billion of the original plan

In the 2019 Annual Shareholder Meeting, HII aimed to achieve VND 3,000 billion in consolidated revenue and VND 70 billion in profit. Regarding business results in 2019, HII reached VND 4,632 billion in revenue, exceeding 54.4% of the set plan; profit after tax earned VND 54 billion, reaching 77.14% compared to the set plan.

In 2019, HII had the dividend payout ratio of 15%

The 2019 revenue considerably grew exceeding the set plan mainly thanks to its current manufacturing segment with a high gross profit margin, and the reduced revenue from the commercial segment, with a very low gross profit margin.

At present, HII is producing stone powder and plastic fillers (70% exported to foreign markets, to about 62 countries, accounting for nearly 20% of Vietnam’s total export of plastic fillers), ranked among the top 2 in Vietnam with continuous revenue growth.

Estimated strong growth in 2020

By 2020, HII will achieve VND 3,300 billion of consolidated revenue and VND 60 billion consolidated profit after tax, increasing by 11% compared to 2019. In response to shareholders about these figures, Chairman of HII, Mr. Dinh Xuan Cuong said that the total profit has an expected growth of 11% but in 2019 HII had a financial profit of VND 18 billion, so the actual profit in 2020 is estimated to increase by 67% compared to 2019. The dividend rate is around from 10% to 15%.

Besides its continuous effort for investment activities, productivity improvement, HII plans to increase its core earnings, details as below:

– Scale: Continue to invest in machines, production lines, expand manufacturing activities.

– Production orientation: Focus on gradually promoting the product quality. The company will produce engineering plastic materials (compound), starting from low-end products, then deploying a joint venture to make intermediate and almost-premium ones. Half of these products will be provided to An Phat Holdings (HII is a subsidiary of An Phat Holdings), another half will be sold on the market.

– Regarding its administration, Board of Directors will keep improving the quality of its internal governance.

In addition, the meeting also passed the decisions proposed by B.O.D, dismissing a member of B.O.D, Mr. Nguyen Huu Long, electing Mr. Nguyen Trung Kien as a new member of B.O.D.

HII Annual General Meeting was successfully organized!