QUẢNG NGÃI — Local steel maker Hòa Phát Group has joined the long-delayed Guang Lian Steel-Dung Quất project as new investor.

The Dung Quất Economic Zone Authority (DEZA) confirmed with the Việt Nam News that the province has submitted plans to ministries and relevant state agencies after a meeting with Hòa Phát Group.

DEZA said Guang Lian Steel Việt Nam Company, the former owner of the project, had failed to garner funding to continue the project after five adjustments to its investment licence in nine years.

The central province revoked 337ha of land—out of the total 500ha project—to build the Guang Lian Dung Quất Steel Factory in Bình Sơn district in a decision last month.

A source from Hòa Phát Group told Việt Nam News that the group would invest VNĐ60 trillion (US$2.7 billion) to build a hot-rolled steel and construction steel project on an area of 350ha.

According to DEZA, Hòa Phát Group proposed a plan to develop the steel project with a capacity of four million tonnes per year after operation.

DEZA said the new project needs approval from the Prime Minister.

In 2006, the Guang Lian Dung Quất Steel Factory was given the green light with an initial investment of over $1 billion by the Tycoons Group (Taiwan) before increasing to $3 billion in collaboration with E-United Group (Taiwan)

The groundbreaking ceremony took place in 2007, but construction did not begin then.

Early in 2012, JFE – the second-largest steel producer in Japan – partnered with E-United Group and contributed capital to the now $4.5 billion project in the zone, but JFE decided to withdraw from the project in 2014.

In March, 2016, following the committee’s inspection of the project, the project’s investor again submitted a proposal with an investment of $2.2 billion. However, the committee decided to withdraw the land since the investor had violated Land Law 2013.

The province had spent a total budget of VNĐ223 billion to clear land and handed over 337ha, out of 504ha, to investors (73.25 per cent of total land area).

In a report from investors, it carried out $73 million in construction of house blocks for workers, land clearance, walls and pile driving between 2006-14. The project is one of the most delayed investments in the province. — VNS