VRG Dong Wha, a joint stock company located in Minh Hung in the Binh Phuoc province of Vietnam signed a contract in June for a Siempelkamp MDF/HDF plant.

VRG/Dongwha is the joint venture of the rubber manufacturer Vietnamese Rubber Group (VRG) and the Korean Dong Wha Company, said to be Asia’s largest manufacturer of MDF.

he foundation for this US$120m investment was laid in July. The plant will be equipped with an 8ft x 47m ContiRoll press which will make it the largest MDF plant in Asia.

Siempelkamp will also be responsible for the engineering of the plant and a large portion of the front-end equipment.

The scope of supply includes a drum chipper, chip storage, screens, conveyors, silos as well as a fibre dryer and a fibre sifter which is custom-designed for fibres produced from rubber tree. Siempelkamp will also supply the complete glue blending system.

The plant, which is anticipated to start operating in 2012, is designed for a daily capacity of 1,200m3 of board, and will be fed by the wood resources from the Binh Phuoc, Binh Duong, Tay Ninh and Dak Nong provinces.