Ca Mau Fertilizer implemented solutions to reduce costs and rationalize production

At the Annual General Meeting of Shareholders in 2019, the Board of Directors of PetroVietnam Ca Mau Fertilizer Joint Stock Company (PVCFC) identified 2019 as a challenging year for Ca Mau Fertilizer to overcome these difficulties. Ca Mau Fertilizer has to make efforts to implement solutions to change, namely reducing costs, optimizing energy, rationalizing production to improve operational efficiency and gradually reduce dependence into the gas source.

In the context, operating businesses faced many difficulties such as: declining gas sources, fluctuating exchange rates, fierce competition from imported goods and an oversupply in the domestic market, etc. Mr. Tran Ngoc Nguyen – Owner Chairman of PVCFC said that Ca Mau Fertilizer is focusing deeply on cost reduction, application of innovations, rationalizing production to improve productivity and business efficiency.

In 2019, in addition to focusing human resources to complete and put into operation with key projects, the Company continues to research and deploy projects on the basis of information technology, optimizing energy saving and reducing. Depending on the gas source, such as: Building a reasonable warehouse system for business development, including hubs, transshipment warehouses into distribution warehouses. Application of modern tools to improve governance such as ERP Project Phase 2, Big Data project completion, BI intelligent reporting system, etc. A forecast of shortage of gas sources in the West Southern region, PVCFC has been seeking many solutions to reduce raw material consumption, partially replace gas materials used for auxiliary equipment such as the Flash gas (emission) recovery project boiler materials (biomass).

Production and business results in the first 7 months of 2019, the company produced 512,000 tons, consumed 441,000 tons, recorded revenue of 4,251 billion VND. Other targets are planned to reach about 60% of the annual plan. Remarkably, the company has saved 20 billion dong. This is a very significant figure that shows that all employees and the Board of Management have come together to find solutions and work together.

Although some financial indicators have been recorded well in the first 6 months, they are not representative for the whole year if the unfavorable market situation continues. Ca Mau Fertilizer will continue to enhance many activities such as improving product quality and maximum cost savings to keep prices reasonable, focusing on market research, brand promotion, etc, to be able to better meet the fertilizer demand for agricultural production, maintain market share as well as strengthen and further develop the Ca Mau Fertilizer brand.

Productivity and Quality Office