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New backers for steel factory

Update: December, 01/2012 - 09:38

HA NOI (VNS)— After six years and numerous delays, the Guang Lian Dung Quat steel factory project has finally been given the green light after new investors stepped forward.

The joint venture between Taiwan's E-United Group and Japanese steel group JFE after the current arrangement was finalised, with adjustments made to the capacity and investment of the steel plant

Early this week Nobuyuki Nada, JFE deputy general director, gave the latest update on the project to the authorities of central Quang Ngai Province.

Under the adjusted project, the plant will boast a total investment of US$4.5 billion and an annual capacity of 7 million tonnes of steel, powered by blast furnace technology and 7,000 workers.

The plant's main products include thin steel, as well as steel used in construction, automotives and for piping. The main raw material will be iron ore imported from Australia.

The plant's construction, on an area of 504ha in the Dung Quat Economic Zone, Quang Ngai Province, will be underway by June 2014.

Quang Ngai Province's authorities believe the participation of JFE, the second-largest steel producer in Japan, will bring efficiency, quality and environmental awareness to the project.

Originally licensed in 2006, the project was started by Tycoons Group (Taiwan) with a registered capital of more than $1 billion. Then, E-United Group (Taiwan) collaborated with Tycoons and raised the capital to $3 billion.

The groundbreaking ceremony was held in late October 2007, but until now its foundations have remained unfinished because site clearance was delayed and the investors adjusted the design and technology as the global economic downturn took its toll.

Early this year, JFE decided to co-operate with E-United Group on the project and contributed capital to the now $4.5 billion project in the Dung Quat Economic Zone. — VNS

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