A new joint-stock company, Saigon Cables Corp, will produce cables for use in televisions and electrical and telecommunications systems for export and local sale.
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The company’s major shareholder, with a 49 per cent stake, is the joint-stock Cables and Telecommunications Material Company (SACOM), which is listed on the
Saigon Cables Corp’s chartered capital stands at VND150 billion (US$9.15 million).
Two other large shareholders are Thai Binh Limited Co representing 16 per cent and the joint-stock Saigon Post and Telecommunications Service Co (Saigon Postel) with 10 per cent.
SACOM general director Do Van Trac, who is also chairman of the new cable company, said procedures are underway for the construction of a cable factory on 18,000 sq.m of land in
"We expect the factory to begin operating in March and we are planning to open letters of credit at the bank to purchase machinery and equipment for our production lines," Trac said.
The company wants to achieve a turnover of more than $19 million in 2006, $42 million in 2007 and $52 million the following year.
Net profits in these years are expected to be $1 million, $3.4 million and $3.6 million, respectively, Trac said.
Saigon Cables expects to see a return on its investment capital in four years, he said.
(Source: VNS)
