HA NOI (VNS)— Korean steelmaker Posco has won a US$400 million contract to supply raw materials for the Fomosa Ha Tinh steel mill, a joint venture of Ha Tinh Steel Corporation and Taiwan's Formosa Group.
Ha Tinh Steel signed the agreement with Posco in Incheon, South Korea, on Monday, under which Posco will ship and provide iron ore for the new facility. Construction of the US$20 billlion plant, capable of processing up to 7 million tonnes of steel per year, will begin in February, 2013 on 3,300ha site encompassing five communes in Ky Anh District, including 2,025ha of land and about 1,290ha of water surface to accomodate the Son Duong Deepwater Port. The project is scheduled for completion in January 2015, when the provincial government expects it to create jobs for about 10,000 local workers in its first phase, with the figure to increase to 20,000 in the second phase.
The province, which approved the project in 2010, expects the project to help shift the provincial economic structure towards industry and promote the development of other industries not only in Ha Tinh but in the neighbouring provinces of Quang Binh and Nghe An.
Posco beat 10 other contractors from Taiwan, China and elsewhere to secure the deal, which it expected would open more doors for the company to bid for Fomosa Ha Tinh's projects, including future steel plants and petrochemical facilities. — VNS