Huge steel project to raise capacity

The Ministry of Industry and Trade has reportedly agreed to a proposal by Taiwan-invested Guang Lian Steel (Vietnam) Co to increase capacity at its steel project in Dung Quat Economic Zone from 5 million to 7 million tonnes a year.

Le Van Dung, deputy director of Dung Quat Economic Zone Authority, said that he had also heard this news but had not seen an official document from the ministry. However, he noted that the intrease in capacity would also mean an increase in investment capital for the long-delayed project in the central province of Quang Ngai to some $4.5 billion, from the current $3 billion.

The site for the works and a private port for importing raw materials like iron ore and coke, and exporting steel products, has been revised up to 504 hectares from the initial 478 hectares. Equipment and technology have also been changed to facilitate larger capacity.

The company, established by Taiwan steel firms Tycoons and E-United, has resumed work on the project after putting it on hold for about two years due to the global economic downturn. In a report sent to the government of Quang Ngai Province recently, it says the steelworks will be up and running in early 2013.

In its original plan, the company expects to run the first phase of the project in mid-2010 with three million tonnes of steel ingots and hot-rolled steel rods a year. In the second phase, the output should increase by two million tonnes.

Tags: Guang Lian Steel, Vietnam steel industry, Vietnam steel market

Posted by VBN on Jul 10 2010. 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