Group considering building an integrated steel plant at the Dung Quat Economic Zone on the site of a stalled steel project.
The Quang Ngai Provincial People’s Committee met recently with related departments on an integrated steel plant investment proposed by the Hoa Phat Group in the central province’s Dung Quat Economic Zone.
According to Dung Quat’s Management Board the steel plant would have a capacity of 4 million tons per year and total investment estimated at $2 billion to $2.5 billion if it was to go ahead. It will produce high-quality long steel, form steel, and sheet steel on an area of 300 to 350 ha on the site of the Quang Lien Steel Plant, which has been delayed and may have its investment license revoked.
The People’s Committee and related departments will create the necessary conditions for the Hoa Phat Group to conduct further research on the project. However, the province should quickly revoke the investment license for the Quang Lien Steel Plant, given it has been delayed due to the investor lacking capital.
At the meeting the Chairman of the Provincial People’s Committee, Mr. Tran Ngoc Cang, said that Hoa Phat Group’s intentions are a positive sign for the province. He therefore asked the Management Board at Dung Quat to quickly coordinate with related departments to complete procedures to revoke the investment license for the Quang Lien Steel Plant and submit them to the Provincial Standing Committee and the Prime Minister for consideration.
He also directed the Management Board to introduce investment procedures and investment incentives and land use, for submission to the People’s Committee for consideration.
In the first quarter of 2015 the Group’s revenue reached VND6.9 trillion ($309.4 million) with a profit of VND1 trillion ($46.5 million). Steel manufacturing has seen high growth in construction steel and steel tube. In steel construction, Hoa Phat holds a market share of 22 per cent and 23 per cent in steel tube, the largest in both.
According to Group Chairman Mr. Tran Dinh Long, Hoa Phat is developing breeding feed factories in northern Hung Yen and southern Dong Nai provinces with a total capacity of 500,000 tons per year and capital of VND500 billion ($22.5 million). The plants are expected to be completed in the first quarter of 2016.