Lack of investors halts steel plant construction

The central province of Ninh Thuan is looking for a new investor to begin work on the Ca Na steel complex project to replace the Malaysian Lion Group.

Site clearance began in late 2008 for the project, with total registered capital up to US$10 billion.

It was designed by a joint-venture of Lion Group’s Maju Stabil Sdn Bhd and Viet Nam Shipping Industry Group (VinaShin) to cover 1,650 ha of land and 330 ha of sea.

The complex was originally planned to have a capacity of 4.5 million tonnes of steel each year at the end of this year, with total capacity 14.42 million tonnes per year by 2025.

The project was suddenly stopped in April last year because the investor was unable to sign a contract to import raw materials, including iron ore and coal.

Early this year, Ninh Thuan Province authorities asked the Malaysian investor to confirm its investment capability, but the Lion Group did not provide a definitive answer.

“We will withdraw the project’s licence but we would like to find another investor for the project,” Le Kim Hung, director of the provincial Trade and Industry Department, said.

South Korean steel giant Posco and the Japanese JFK Steel Group have been invited to join the project, but Posco said it would like to build its plant in a different place and JFK has yet to reply. — VNS

Tags: Ca Na steel complex, Lion Group, Vietnam steel industry, Vietnam steel market