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US$1.15-bil steel project planned
An international seven-party alliance has plans to develop a US$1.15-bil steel complex in the southern province of Ba Ria-Vung Tau to serve the local automobile, shipbuilding and energy industries.
A representative of Ba Ria-Vung Tau Industrial Zone Authority (BIZA) confirmed the information with the Daily on Monday and said the investors had submitted the project to My Xuan A2 industrial park authority in the province.
Phi Dinh Luc, head of the project management department of the BIZA, said on the phone that it had sent the plan to related ministries including the Ministry of Industry and Trade for consideration.
The alliance comprises of China Steel Corp., VMEP, Simitomo Corp., FengHsin Iron & Steel Co., Ltd, Chun Yuan Steel Industry and Hsin Kuang Steel from Taiwan, and Sumitomo Metals Industries from Japan.
The seven investors will set up a joint venture namely China Steel Sumikin Vietnam Joint Stock Co. to develop the project on 109 hectares at the zone.
Luc said the project with the capacity of 1.6 million steel tons per year would take four years to construct.
Luc expected to receive feedback from the ministries this week to report to the Prime Ministry soon. "The joint venture will get a license this month if its application is approved by the ministries and the Government," he said.
The project, if approved, will markedly contribute to the development of the automobile, shipbuilding and energy industries. Most local steel manufacturers produce steel for construction.
He said the new project was large in comparison to a steel project by South Korea's Posco Group, which is building a mammoth steel mill in Phu My 2 Industrial Park in the province.
The new steel project, when in place, will be able to turn out three million tons of rolled steel annually and its cold-rolled steel products alone can satisfy one-third of and even half the total domestic demand.
Ba Ria-Vung Tau is emerging as an attractive destination for investors in heavy industry such as steel production. At present, four major steel makers have factories there, including Vinakyoei Steel which can produce 280,000 tons of construction steel per year and BlueScope Steel which has an annual output of 175,000 tons.
Last September, the Prime Minister approved a master plan for the steel industry development, aiming at meeting domestic demand by 2015 and exporting steel products by 2025.
Under the master plan, which will require total investment of some US$12bil, the industry should be able to produce 11 to 12mil tons of finished steel products by 2015 and some 18mil tons by 2020.
VNN
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