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Progress resumes on Taiwanese steel plant
Taiwanese-invested Guang Lian Steel Viet Nam Co., Ltd will resume construction this month on a multi-billion-dollar steel plant in the central province of Quang Ngai, the company's General Director, Hsueh Hung Yi, said in a recent meeting with provincial authorities.
The project in the Dung Quat Economic Zone had been put on hold for over 18 months due to the global recession.
The Deputy Director of the Dung Quat Economic Zone Authority, Le Van Dung, confirmed that Guang Lian Steel had solved its financing problems and was preparing to relaunch the project at a budget enlarged from the previous US$3 billion to $4.5 billion.
Guang Lian, established by Taiwanese steel giants Tycoons and E-United, has already begun work on the plant and a workers residence.
With first-phase land clearance nearing completion, 223ha of the eventual 455-ha site has been handed over to Guang Lian.
The plant, when completed, would have a capacity of 3 million tonnes in the first phase and 5 million tonnes in the second phase. It would use blast-furnace technology and would be one of the two largest projects in the economic zone. The first phase was expected to reach full capacity in 2013.
The project was originally licensed to Tycoons in 2006 with a budget of over $1 billion. The project costs rose to $3 billion in 2007, when Tycoons teamed up with E-United to upgrade the project technology.
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