KCP has been involved in developing the Sugar Industry in Vietnam since the early 1990’s by supplying core equipment to various sugar factories and also executing turnkey projects. High quality equipment, performance, after-sales-service and experience in growing sugarcane encouraged the Government of Vietnam to invite KCP to set up a sugar factory at Thua Thien Hue Province in Central Vietnam. This led to the formation of KCP Vietnam Industries Limited, as a subsidiary of The KCP Limited with an objective to establish a modern Sugar Factory.
The project was executed by FCB-The KCP Limited and the plant was commissioned in early 1999. Due to inadequate supply of sugarcane to meet the plant capacity at Hue in Thua Thien Hue Province, the capacity utilization fell below 20 % during 1999 & 2000 season.
As the prospects of developing the sugarcane area were low it was decided to shift the plant from Hue in Thua Thien Hue Province to Son Hoa district in Phuyen Province in Vietnam where large supplies of Sugarcane were available. The Government of Vietnam responded quickly to this request by issuing license and by granting 72 Billion VND loan from Development Assistance Fund for the Shifting of the Project.
The plant was relocated by July 2001 and load trials were taken at new location in Son Hoa District, Phuyen in July 2001 and commercial Production successfully started from January 2002 to manufacture Export Quality Refined Sugar and White Sugar. The initial production capacity was 2,500 tcd which was further expanded to 6,000 tcd which includes another plant which was also established in Dong Xuan District in Phuyen province.