September 19, 2008
Vedan's Vietnam plant told to halt operations on water pollution charge
Vedan's lysine plant in Phuoc Thai village in Dong Nai province of Vietnam has been told to halt operations while authorities investigate allegations that it was discharging wastewater into rivers.
The factory, which produces 1,200 tonnes of lysine a month, was being investigated for dumping untreated water.
Provincial authorities are halting the firm's operations to inspect the factory's wastewater treatment system, according to Vietnam's Minister of Natural Resources and Environment (MNRE) Pham Khoi Nguyen.
Authorities say investigations had been ongoing for months. They said evidence has been gathered to halt the factory's operations.
The firm is believed to have contaminated 45,000 cubic metres of water in the river. With the cost of cleaning water at US$600 per cubic metre, the firm may be penalised to pay about US$27 million if made to pay the cost of cleaning.
Vedan Vietnam is a subsidiary of Hong Kong-listed Vedan International. Vedan Vietnam has six manufacturing facilities in the country, with the factory in Dong Nai ts largest, occupying a massive 1.2 million square metres of land. Besides lysine, the group's factories in Vietnam also manufacture MSG, starch, glucose syrup and chemicals.
The group has established Vietnam as its production base since 1991.