KCP Ltd is implementing an $80 million expansion of its sugar mills in Vietnam through its subsidiary KCP Vietnam Industries Ltd.

The expansion will more than double the capacity at both its sugar mills in the districts of Son Hoa, where it has sugarcane crushing capacity of 4,500 tonnes a day, and Dong Xuan mill of 1,000 tonnes.

KCP Ltd is a diversified company in cement manufacture and engineering – its an equipment manufacturer for a range of industries including cement and sugar.

V.L. Dutt, Chairman and Managing Director, said the larger mill at Son Hoa is being stabilised at an average sugarcane crushing capacity of about 6,000 tonnes a day and over the next couple of seasons will be expanded to 8,000 tonnes and then 10,000 tonnes.

Some of the common infrastructure such as boilers will be installed to handle the targeted expansion.

Some of the equipment freed from the larger mill will be used to expand the capacity of the other mill to about 3,000-4,000 tonnes, he said.

Plans also include establishment of a 60-kilolitre a day distillery.

The company is also planning a co-generation plant but the exact capacity is yet to be decided. But it will be around 25-40 MW, Dutt said. The mills are in the south central coastal region of Vietnam.

The expansion will be funded through local borrowings – the subsidiary is a debt-free company, he said.

balaji.ar@thehindu.co.in

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