Vietnamese and German companies on May 12 reached an US$81m agreement on providing advanced production technology to one of Vietnam’s leading cement producers Ha Tien Cement Co I.

According to the agreement signed by Ha Tien, a subsidiary of Vietnam Cement Corporation, and Germany’s Polysius AG of ThyssenKrupp Technologies group the latter would design and produce a complete clinker production line for the Binh Phuoc Cement Plant in Binh Phuoc Provinces Binh Long District.

The new production line, to become operational in 2008, will have a daily capacity of producing 5,500t of clinker.

"This is the first plant that Ha Tien has invested by itself and we hope the project will create more jobs in the south eastern region," said Nguyen Ngoc Anh, General Director of Ha Tien.

According to Polysius AG Co, it would also provide technical training for Ha Tien workers as part of the contract.

Construction of the Binh Phuoc Cement Plant, worth a total of VND4.7 trillion (US$290m) in capital will begin later this year. Capital for the plant has been mobilised from four Vietnamese State-owned commercial banks and a foreign credit of $150m.