Indian-invested KCP Vietnam Industries Limited has proposed an expansion plan for its Son Hoa sugar plant in Phu Yen province, aiming to increase its daily sugarcane processing capacity to 15,000 tonnes. The company also plans to deploy the 45 MW second phase of its 75 MW KCP Phu Yen biomass power plant in the region.
The additional investment capital is $60 million, Kavitha Dutt, joint managing director of KCP Limited, said at a meeting with provincial People’s Committee Chairman Ta Anh Tuan last Friday, reported local media.
Kavitha Dutt expressed hopes that KCP Vietnam, a subsidiary of KCP Limited, would receive support from the provincial leaders to ensure that the necessary procedures are completed according to the proposed schedule.
In response, Tuan mentioned that the People’s Committee had sent a formal request to the Ministry of Industry and Trade, advocating for the inclusion of the biomass power project in the revised National Power Plan VIII. He also tasked relevant agencies with assisting KCP Vietnam in completing the necessary procedures for the in-principle approval.
Tuan further expressed his hopes that KCP Limited would encourage other Indian businesses to explore opportunities in Phu Yen, especially in sectors where the province has considerable potential.
KCP Vietnam, located on 24/3 Street in Son Hoa District, Phu Yen, specializes in producing and trading high-quality sugar and sugar by-products.
Founded in India in 1941, KCP Limited is a diversified group with interests in sugar production, cement manufacturing, hotel services, and the production of advanced machinery for industries such as sugar processing, cement, heavy engineering, mineral processing, energy, and aerospace.
In 1997, as part of Vietnam’s “One Million Tonnes of Sugar” program, KCP Limited established KCP Vietnam and invested in a sugar refinery in the central town of Hue, with an initial capacity of 2,500 tonnes of sugarcane per day. However, due to insufficient sugarcane raw materials, the refinery was relocated to Son Hoa District in 2000.
KCP Vietnam’s office and plant officially began operations in Son Hoa District in 2001, with an initial processing capacity of 2,500 tonnes of sugarcane per day. Over time, the plant’s capacity was expanded to 10,000 tonnes per day, along with the construction of a 30 MW biomass power plant, which is now connected to the national grid. The company’s total investment at this point was $103 million.
In 2009, the company increased the capacity of its second sugar factory in Dong Xuan District, Phu Yen, to 1,000 tonnes of sugarcane per day, diversifying its product offerings to meet rising customer demand.
KCP Vietnam has become a key economic contributor in the region, providing a primary source of income for approximately 10,000 households involved in sugarcane farming across more than 20,000 hectares. The plant also employs over 700 direct and indirect workers.
