Ca Na steel project’s certificate of investment revoked

Ca Na Steel Complex project is considered the largest FDI project in investment value in steel production area, as well as the largest project in Vietnam, to the time of the license approval in September 2008.

The prime minister has agreed with the proposal of the People’s Committee of Ninh Thuan province on revoking the investment certificate of Ca Na steel complex, of which Vinashin-Lion Joint Venture Company Limited is the investor.

Information from the government’s website mentioned that investor of the above project has not completed commitments to carry out the project as stated in the investment certificate.
Therefore, Ninh Thuan provincial People’s Committee has sent written petition to the prime minister regarding the withdrawal of investment certificate of this project.

People’s Committee of Ninh Thuan province, in September last year, had proposed Ministry of Industry and Trade to introduce new investor for the project. In the document sent to Ministry of Industry and Trade, the committee stated that after almost two years breaking ground, the investor had just completed demining works, and had not implemented the project according to the committed schedule.

In addition, the province leaders affirmed that the investor do not have financial capacity, lacked of capability and experience in the feel of steel production, and lacked of resolve in implementing the project. Thus, Ninh Thuan province has all conditions to revoke the investment license.

The above project was implemented by the joint venture between the Vietnam Shipbuilding Industry Group (Vinashin) and Lion Group (Malaysia), with total investment of nearly $9.8 billion, 50-year operating license from the date the investment license was received

Started from November 2008, Ca Na steel project aimed to build and operate a steel complex with blast-furnaces, oxygen-transmitting kilns, refining furnace, and hot and cold-rolling mills. The target of the first stage (2008-2011) is to complete a complex with capacity of 4.5 million tonnes of hot-rolled steel.

Tags: Ca Na steel project

Posted by VBN on Feb 26 2011. Filed under Steel. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry