Vietnam’s Minh Phu Seafood will raise the charter capital of one of its wholly-owned subsidiaries to finance the construction of a new shrimp-processing factory in Mekong Delta region.
On 19 June, the company’s board of directors approved a resolution to raise the charter capital of Minh Phat Seafood by VND 500 billion (USD 21.7 million, EUR 18.3 million) to VND 600 billion (USD 26 million, EUR 22 million).
Minh Phu CEO Le Van Quang confirmed to SeafoodSource 21 June the additional funds will be used to construct the Minh Phat processing plant in Ca Mau Province.
Earlier this year, Quang said construction at the Minh Phat facility, which will have a capacity of 30,000 metric tons (MT) per year of finished products, is expected to begin in May and take one year to finish. But in the stakeholders’ meeting on 17 June, the CEO said work at the plant has been delayed to 15 July, as Minh Phu needed to fulfill complicated investment procedures for the project required by Vietnam’s new revised investment law.
Minh Phu is also facing additional construction obstacles, including an increase in the costs of input materials, especially the skyrocketing prices of steel. However, the company will try to put the Minh Phat plant into commercial operation by May 2022, by the time the first shrimp crop in Mekong Delta will be harvested, according to Quang.
The strict requirements of the new revised investment law have also resulted in a delay of the expansion of Minh Phu’s breaded shrimp-processing plant in Hau Giang Province. According to Quang, the project is now slated for completion by March 2022, two months later than previously expected. Once operational, it will help increase Minh Phu Hau Giang’s total annual production capacity of breaded shrimp by 15,000 MT in May to 25,000 MT per year.
Minh Phu has also announced the planned construction of another processing plant, titled “Minh Qui.” The company is set to break ground in 2023 in Ca Mau, and the plant will have a capacity of 20,000 MT per year. The factory’s annual capacity will be raised to 30,000 MT after one year of operation.
Photo courtesy of Minh Phu Seafood
