Vietnam’s largest steel plant raises capital to $4.5 billion

The Ministry of Industry and Trade has allowed Taiwanese-invested Guang Lian Steel Vietnam Company Ltd to increase the capacity of the Guang Lian steel mill in the Dung Quat Economic Zone in Quang Ngai province from 5 to 7 million tons per year, with total investment capital rising from $3 to $4.5 billion.

This is the third time the plant’s capacity and capital has been raised since it was licenced in 2006.

Guang Lian Dung Quat will implement the new plan in two phases. First, it will produce 3.5 million tons of steel starting in 2013, with investment capital of $1.9 billion. Second, it will increase its capital by $1.6 billion to produce 7 million tons of steel annually.

Guang Lian steel factory was built in 2007 in the Dung Quat Economic Zone on 504 hectares.

Nguyen Xuan Thuy, Dung Quat Economic Zone management board chief, explained that Guang Lian is a steel refinery with blast furnaces. It is the biggest project in Dung Quat Economic Zone.

Construction will begin in early 2011 and the plant will be put into operation in 2013. Dung Quat Economic Zone has handed over around 300 hectares of land to the investor.

This project is invested by Tycoons Group with registered capital of over $1 billion. E-United joined this project and raised the capital to $3 billion. The groundbreaking ceremony was performed in October 2007, but it was delayed until early this year.

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