Nippon Light Metal and Sojitz Corporation announced on Monday they signed basic agreement with Vietnam National Chemicals Corporation and the subsidiary, South Basic Chemicals to start feasibility study for Asian largest construction of aluminium hydroxide plant for chemical processing applications. Nippon Light Metal has Asian largest output capacity of aluminium hydroxide to supply raw materials for water treatment chemicals, phosphate free detergent builders and flame retardants. The firm plans to transfer the aluminium hydroxide production to Vietnam from current Shimizu plant, at which the firm produces aluminium hydroxide and alumina. The firm seeks synergy through the joint venture with South Basic Chemicals, which produces aluminium hydroxide and has mining company with bauxite mine. They will select the site for the plant by the end of 2008 after exploration of bauxite resources. They plan to build aluminium hydroxide plant with annual 550,000 tonnes of output capacity for around 40 billion yen. They already got approval for the project from office of prime minister of Vietnam in July. They will start to find reserve of bauxite at Lam Dong province in southern Vietnam while they assess environmental impact by the plant construction.
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