VRG Dongwha has recently started the commercial production of its second MDF line at VRG Dongwha’s factory in Binh Phuoc Province, Vietnam, having the production capacity of 600 cubic meters per day with a 26-meter-long press machine. This production line is specialized in thin boards manufacturing, while the first production line concentrates on thick boards. The synergy between the two lines is expected to enhance VRG Dongwha’s market share for thin boards. The company is also focusing India’s growing thin MDF market, and target to increase their share in the current financial year with more aggressive market efforts and supply.
“The establishment of the second production line allows us to diversify the portfolio of our products and maximize the efficiency of production,” VRG Dongwha CEO Lee Dong-ho said. “VRG Dongwha’s stable supply of MDF and Dongwha Vietnam’s supply of floor laminate to Ho Chi Minh City’s apartments will create a synergy in Dongwha’s businesses in Vietnam, enabling vertical integration of our overall timber businesses.”
VRG Dongwha, which was set up in 2008 with a $140 million investment is a joint venture between state-owned timber company Vietnam Rubber Group (VRG) and Dongwha Enterprise, an Incheon-based wood panel manufacturer specializing in MDF and particle board. Since the first production line began its operation in May 2012 on 380,000 square meters of land, VRG Dongwha has annually produced 300,000 cubic meters of MDF, which is mainly used as furniture material. With Asia’s longest press machine at 47 meters, the first production line has recorded the highest output on the continent. The company, therefore, invested $66 million in the establishment of the additional production line.
Based on its popularity, VRG Dongwha posted 36 percent in its operating profit ratio in 2015, three years after the first line began operations. The second line is expected to make the company’s sales for this year rise to over 20 percent from 113.8 billion won ($100 million) last year. In addition, VRG Dongwha began producing melamine-faced board this month. It also plans to open a laminate floor factory in Vietnam as soon as possible.
Dongwha Enterprise held a ceremony recently to commemorate the second production line for medium density fiberboard (MDF) at VRG Dongwha’s factory in Binh Phuoc Province, Vietnam.