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Formosa Steel to boost investment

Update: June, 22/2012 - 10:30

HA NOI — Taiwan-invested Hung Nghiep Formosa Ha Tinh Steel Co will increase its investments in cast iron refinery in the central province of Ha Tinh to US$10 billion from the current $8.9 million.

A representative from the project's management board said it would become operational in May 2015 instead of 2014 as planned.

He said the planned deadline was postponed due to some changes in the general design.

The project has completed 961ha of land clearance out of 1,966ha.

The company planned to borrow $3 billion from foreign banks and $3 billion from Vietnamese ones. However, Viet Nam's banks have yet to lend a company funds which exceed 15 per cent of their registered capital.

The project also faces a lack of water supply. It expected Rao Tro reservoir project to come into operation earlier than initially planned.

In the first phase of the project, the Son Duong deepwater seaport with 14 wharves, a steel plant with yearly designed capacity of 7.5 million tonnes, and a 750MW thermoelectricity plant would be completed.

It also targeted to increase its capacity to 22 million tonnes per year.

Prime Minister Nguyen Tan Dung last month asked the Ministry of Finance to seek temporary capital of VND650 billion ($30.9 million) for the project to implement land clearance and compensation.

Dung asked the provincial People's Committee and Electricity of Viet Nam to ensure water supply and power grids for the project.

Earlier in 2010, Ha Tinh Province handed over around 3,300ha of land in Ky Anh District for the investor to develop the complex. When completed, the project will be the first facility of its kind in the nation.

Local authorities expected that the complex would create 10,000 local jobs in the first phase, with the figure growing to 30,000 upon completion of the second phase. — VNS

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