PROJECT MANAGEMENT INVESTMENT OF LILAMA CORPORATION 18 IN BINH DUONG CONTENT Based on available experience, I choose the project “Move manufacturing factory that resulted in environmental pollution and investment to construct the factory of air steel and equipments factory” of LILAMA Corporation 18 in Ben Cat – Binh Duong General introduction of the project: LILAMA Corporation 18 is the state corporate, the member of LILAMA LILAMA 18 has an equipments manufacture factory located in Duong Dinh Hoi Street – District – HCMC To execute the policy of HCMC People’s Committee to move all factory that caused pollution to industrial parks and surroundings LILAMA 18 has set up the project to move and investment to construct the factory of air steel and equipments factory: - Name of the project: Move manufacturing factory that resulted in environmental pollution and investment to construct the factory of air steel and equipments factory - The Investor: LILAMA Corporation 18, No 9-19 Ho Tung Mau, District 1, HCMC - Construction location: An Diem Commune, Ben Cat District, Binh Duong Province - Area, investment capacity: Area – 10 ha, investment capacity 10.000 tons of engineering product/year - Execution time of the project: 24 months since 7/2005 - Total investment: 70 billion Dongs in which + Equity : 14 billion + Moving support capital: 30,7 billion (is the value of transferring land use right purpose in the old factory supported to move by People’s Committee of HCMC) + Long-term commercial loans: 25,3 The importance of the project: LILAMA 18 with essential functions are processing, manufacturing equipments, and installing industrial factories In recent years, LILAMA 18 has processed, manufactured and installed hundred thousands of tons of technology and mechanic equipments LILAMA 18 has a manufacturing factory located in District – HCMC Because of urbanization, during its operation resulted in effecting to people around, therefore, LILAMA 18 has implemented moving requirement of People’s Committee of HCMC to move the factory to the surroundings As per development tendency, LILAMA 18 will move and investment on constructing a new and modern equipment manufacturing factory with large planning site to meet the requirements of production and business of the company in HCMC, Binh Duong, Dong Nai, Long An, BRVT etc and served for exporting demand of engineering products of the company New invested factory will take 60% of manufacturing capacity of LILAMA 18, with modern factory, great traffic location, located in the place with strong industrial development, and many manufacturing management procedures are applied, LILAMA 18 will increase capacity, prestige and find out new contracts State and describe the roles of material personnel who are working for this project: in this project, managing method to implement the project is that the Investor will directly manage the project and execute some items of the project In order to management timely, LILAMA 18 has set up Managements of the project, appoint 01 Vice General Director to be the Head of Managements Managements of the project will be controlled by General Director and play the role of key combination with departments of the company to implement the project Managing structure is as follow: GENERAL DIRECTOR MANAGEMENTS OF THE PROJECT DEPARTMENTS OF THE COMPANY SAFETY AND Q/A AND Q/C TECHNICAL THE UNIT CONSTRUCTS THE PROJECT (THE COMPANY DIRECTLY DOES OR OUTSIDE HIRE) PROTECTION SUPERVISOR - General Director: who is the leader of the project, and takes full responsibilities wholly for the project - Managements of the project: is the department which directly control and manage the project, the key to connect between departments in the company and construction unit to commence the project Be a counselor for General Director to choose the contractor as per regulation + Director of the Project: 01 Vice General Director will be in charge this position, takes full responsibilities to represent General Director to monitor and remind concerned parties to implement the project + Safety and protection department: play the role of assuring safety, security and industrial hygiene at the site + Q/A and Q/C department: responsible for monitoring, controlling, managing the quality of all items in the project + Technical supervision department: Supervise the technique of the investor, assure the rate of progress and quality of the project Confirm and supply executed quantity of the project, control all technical duties related to the project - Departments of the company: Departments of the company will operate as prttime job for the project, departments will appoint the staff to monitor and control the project Concerned parties: - Concerned authorities, local authorities: who will inspect Environmental Impact Assessment Report, the method to supply power, water, fire fighting and prevention… - The investor: LILAMA Corporation 18 The project belonged to Group B which uses support capital of the State Board of Directors of LILAMA 18 is the agency to decide and approve the invested project and decide responsibility belonged to responsibility of approval agency during process of implementing the project LILAMA 18 will: + Arrange capital source to implement the project + Manage and operate the project + Organize the bidding to select the technology and equipments + Can self-implement construction + Execute other duties related to the project - Construction unit: is the direct department which executes all duties of the project Construction unit include: + The unit to supply technology, equipment: is the unit who win the bidding package of selecting technology and equipments The unit is responsible for supplying equipments, transferring technology and supervising the construction and installation of equipments and assures that the factory will operate correctly as per technical standards + Construction unit: the unit will be in charge of implementing the construction, equipment installation (including construction unit of LILAMA 18) Construction unit is responsible for constructing all items of the project and complying fully with requirements of technique, progress, quality… of the signed contract Construction units will be monitored by Managements of the project and the unit which supplies technology, equipments The effect of the project: After completing the project and putting into use, the project brings successful effect for LILAMA 18, details as follow: - New investment of the factory will implement together with moving the factory resulted in pollution is the urgent requirement of LILAMA 18 as well as the policy of People’s Committee of HCMC, LILAMA 18 has been supported by People’s Committee of HCMC - The project of the factory is built in accordance with requirement of construction market in Vietnam in general and in the South in specific is developing strongly Especially in the factory located in Binh Duong Province – the center of industrial development region in the South, thus, it is quickly to take the manufacturing market for cement factories, petrol, electricity, chemicals, steel, paper etc to reduce foreign currencies for importing - Increase capacity for LILAMA 18 Together with some projects invested to increase manufacturing capacity of LILAMA 18, the project plays an important role in development of LILAMA 18 day by day With the role of material factory of LILAMA 18, after operating in 2007, the factory has implemented duly all procedures of ISO management, quality control management ASM of the USA, therefore, it makes everyone believe the factory and bring many export contracts for Torosima – Hong Kong, Kocks – Germany; Polysius-Germany, Jurong – Thailand; Alstom - Swiss … - Is the essential factory of LILAMA 18, it plays an important role in strong sevelopment of LILAMA 18 since 2008 until now, the details of revenue and earnings of LILAMA 18 are as follow: Calculation Unit: Million Dongs No Year 2007 2008 2009 2010 2011 2012 Revenue 383.944 498.372 515.163 576.719 616.396 850.000 Earnings Remarks 7.429 12.257 20.662 21.183 28.488 38.088 Plan (Resource: Financial statement 2007 – 2011 has audited and adjustment plan in 2012of LILAMA 18 - With the success of the project of steel and equipment structure factory and important contribution to the development of LILAMA 18, LILAMA 18 continues setting up the project of widening the steel and engineering equipment structure factory to increase capacity of the factory up to ~ 15.000 tons of engineering products/year, the Project has been approved by Board of Directors of the company and prepare the report of feasible characteristics