PHI Group to set up wood pellet factories in Vietnam
PHI Group, a company focused on energy and natural resources, is to establish wood pellet factories in central and southern Vietnam after signing a memorandum of understanding with two Vietnamese wood processing companies.
The initial proposed combined capacities for the joint venture wood pellet plants are around 400,000 tonnes a year. PHI says it intends to own a minimum of 51% equity interest in each of the JV companies.
The demand for wood pellets is primarily in Europe, Japan and Korea, where carbon-reduction requirements are driving power utilities – particularly coal-fired power plants – to mix more wood pellets into their fuel supply.
'We are pleased to cooperate with the wood processing companies in Vietnam and their management team, both of which have a long history of operational, marketing and technical excellence,' comments Henry Fahman, chairman and CEO of PHI Group. 'We believe the combined strengths of our joint ventures will create superior added value for all the shareholders and stakeholders.'