Duc Giang Chemical (DGC) Plans to Sell Ethanol Plant After VND 378B Renovation
This Aveluro analysis covers DGC on HOSE in the Chemicals sector. The classified event type is m a announcement, with neutral sentiment and a deterministic market-impact score of 5.6/10. Source coverage came from CafeF - Doanh nghiệp, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Duc Giang Chemical Group (DGC) has approved the transfer of its ethanol plant in Dak Nong, a facility it acquired and renovated for a total of approximately VND 378 billion. The transaction is expected to close in 2026, though the buyer and price remain undisclosed. This decision comes just over two years after DGC revived the long-idle plant, highlighting a shift in corporate priorities.
Key Facts
- DGC’s board approved the transfer of the Duc Giang Alcohol Plant, an asset of Duc Giang Chemical Dak Nong Co., Ltd.
- DGC acquired the plant at auction in early 2024 for about VND 253.25 billion.
- An additional VND 125 billion was spent on renovations during 2024-2025, bringing total investment to roughly VND 378 billion.
- The plant has a designed capacity of 50,000 tonnes of ethanol per year.
- After renovation, the plant resumed operations in late 2024, initially consuming about 1,000 tonnes of ethanol per month.
- DGC had targeted to raise monthly consumption to 3,000 tonnes and achieve 50% average capacity utilization in 2025.
- At full capacity, the plant was expected to generate VND 1,500 billion in revenue and VND 200-300 billion in after-tax profit annually.
What Happened
DGC’s board has authorized management to seek a buyer for the ethanol plant in Dak Nong, with the sale expected to be completed in 2026. The plant was originally built by Dai Viet Co., Ltd. but faced environmental issues, boiler problems, and weak demand, operating at only 10-15% capacity by 2015. In 2020, Agribank’s asset management company put it up for auction with a starting price of over VND 222.9 billion.
DGC won the auction in early 2024 for VND 253.25 billion, acquiring physical assets rather than shares. The group then invested an additional VND 125 billion to upgrade equipment, improve ethanol purity from 95% to 99%, and restart production by late 2024. At the 2025 annual general meeting, management reported monthly sales of 1,000 tonnes and aimed to triple that. The sale decision comes amid legal and personnel changes at DGC.
Market Context
DGC shares closed at VND 36,000 on July 27, 2026, down 2.58% on volume of 285,500 shares. The stock trades on HOSE in the Chemicals sector. The ethanol plant divestiture follows a period of corporate restructuring and may signal a refocus on core chemical operations. The broader market has seen mixed sentiment, with DGC’s price reflecting uncertainty around its strategic direction.
Strategic Significance
The planned sale suggests DGC is reassessing its non-core assets after a relatively short holding period. The ethanol plant, while potentially profitable at full capacity, requires significant operational focus and market development. By divesting, DGC may aim to free up capital and management attention for its main chemical businesses, especially amid ongoing legal and governance changes. The move could also indicate a shift away from biofuel-related investments.
What to Watch
- Announcement of a buyer and transaction price for the ethanol plant.
- DGC’s Q3 2026 earnings release for updates on core chemical segment performance.
- Any further asset sales or restructuring moves by DGC.
- Regulatory or legal developments affecting DGC’s operations.
- Ethanol market conditions and demand trends in Vietnam.