Cleared land ready for Formosa steel project this month

The central province of Ha Tinh will hand over 3,300 hectares of cleared land for Hung Nghiep Formosa Ha Tinh Co. Ltd this month so that the company could boost construction of its huge steel complex project, the provincial chair said.

Vo Kim Cu, chair of Ha Tinh Province, told the Daily on the phone on Tuesaday that site clearance of land for Formosa steel complex project was nearly complete.

“The province will definitely complete the site clearance and will hand over all cleared land for the project’s developer within this month,” he said.

Cu said the Taiwan-based Hung Nghiep Formosa Ha Tinh Co. Ltd has expressed its eagerness to carry out the project by raising the total investment capital of the project’s first phase from $7.9 billion to $8.9 billion.

Total investment for the whole project in Vung Ang Economic Zone was pledged at some $16 billion.

At the moment, the company is constructing some basic infrastructure works such as roads, boarding houses for workers, water and electricity supplies and land leveling.

“As committed, the company will start operation of the first phase of its steel plant within three years after the project owner is given cleared land, while part of Son Duong Port will begin its operation within four years,” said the provincial leader.

Main components of the steel complex project include a steel plant with total capacity of 7.5 million tonnes per year, Son Duong port with an annual throughput of 30 million tonnes, and a thermoelectric plant with an output of 1,600MW.

According to the province’s chair, when the project’s first phase starts its production, it will create jobs for some 10,000 locals, and the number will triple to 30,000 after the two phases are completed.

“The project will help boost economic development for not only Ha Tinh, but also Quang Binh and Nghe An provinces,” Cu said.

However, a source of Vietnam Steel Association commented that although the project broke ground in 2008, it had barely made a move because of slow site clearance. This stagnation prevents the company from signing contracts for acquiring facilities from Europe to build the plant.

The Formosa steel complex is a sprawling one, encompassing five villages in Ky Anh District. To make room for this huge complex, some 1,800 families have been relocated to other places. – SaigonTimes

Tags: Formosa steel project, Vietnam steel industry, Vietnam steel market