suspend its listing on the Hanoi Stock Exchange due to unfavourable
business conditions.
The company's general director,
Tran Trieu Thanh, told a press conference on Oct. 11 that production
at the plant has been suspended due to the imposition of high export
taxes.
The company operates the Sai Gon Quy Nhon
titanium slag plant, the first plant in Vietnam to produce titanium
slag at a purity of 93 percent.
The export tax
levied on titanium slag is currently 15 percent – down from an earlier
18 percent but still too high for the company's exports to remain
competitive.
To cope with the high tarriff and
attempt to cut its losses, Sai Gon Quy Nhon Mining Co began reducing
capacity at the plant in July this year, Thanh said.
Suspending the loss-making slag production operations entirely actually
would improve the company's bottom line, Thanh said, hinting that
production could resume in the first quarter of 2011, when tarriff
changes could be possible.
Meanwhile, the suspended
operations are having a negative impact on share value, prompting the
management's decision to de-list, pending shareholder approval.
The company's leading shareholder, Dang Thanh Tam, said the blue-chip
shares had a large impact on movements of the HNX-Index.
In response to the concerns of small shareholders, Tam said, the
company's management board plans to buy back shares from any investors
that no longer wish to invest in the company.
Changes in tarriff policies would be decisive as to how long the listing would be suspended, Thanh said.
"I believe the State will soon realise our difficulties and make proper changes to support our production," he added./.
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