New investor sought for lapsed $9.8b steel project

The People’s Committee of central Ninh Thuan Province recently asked the Ministry of Industry and Trade to help it find investors for a US$9.8 billion steel complex in Ninh Phuoc District.

The complex was formerly a joint venture between Maju Stabil Shd of Malaysia’s Lion Group and Viet Nam Shipbuilding Industry Group, or Vinashin. They were awarded an investment certificate in 2008.

The investors were scheduled to finish the complex’s first phase, a hot-rolled steel plant, with an annual capacity of 4.5 million tonnes, by 2011.

However, the investors failed to make any headway after clearing the site, which began in late 2008, the committee said.

“The province has good reason to withdraw the investment certificate from Lion-Vinashin joint venture,” said Le Kim Hung, director of the provincial Department of Industry and Trade.

“We are seeking other investors with sufficient experience and financial capacity to continue the project,” Hung said.

If a new investor is found, the province will ask the Prime Minister and the Ministry of Industry and Trade to approve the transfer of the investment certificate.

“However, a suitable investor has yet to appear,” Hung said.

The province has invited the South Korean Posco Group to join the project but it has yet to reply, he added.

Earlier, the Government agreed to include the complex in the nation’s master plan for steel development. As a result, the committee agreed to set aside 1,650ha of land in Ninh Phuoc District for the project.

The province is still working on making 1,000ha of land available for the project.

In addition to a hot-rolled steel plant, the complex comprises a 700MW thermo-power plant, a seaport capable of handling 15 million tonnes of goods a year, a lime oven, and an oxygen production factory. — VNS

Tags: Vietnam steel industry, Vietnam steel market