Quang Ngai: $4.5 billion steel project resumes

Nov 28th at 19:26

28-11-2012 19:26:06+07:00

After 6 years, the $4.5 billion Guang Lian Dung Quat steel plant project has been re-launched by the joint venture between the E-United Group (Taiwan) and JFE Steel Corporation (Japan).

On November 27, Mr. Nobuyuki Nada, Deputy General Director of JFE Group introduced the steel project to official of Quang Ngai Province.

Accordingly, the plant will have a total capital of $4.5 billion, using blast furnace technology, with a total capacity of 7 million tonnes per year, employing 7,000 workers.

The plant's main products include thin steel, steel used in construction, automotive and steel pipes. The main material will be iron ore imported from Australia. The construction will be kicked off in June 2014, on an area of 504 ha in Binh Dong Commune, Binh Son district, the Dung Quat Economic Zone, Quang Ngai Province.

With the participation of JFE Steel Corporation, the second steel producer in Japan, Quang Ngai leaders believed that the project would be accelerated and ensure environmental standards and process high-grade steel products.

This project was licensed in 2006, started by Tycoons Group (Taiwan) with a registered capital of more than $1 billion. After that, E-United Group (Taiwan) collaborated with Tycoons to implement the project and raised the capital to $3 billion.

The groundbreaking ceremony was held in late October 2007, but until now its foundation has not finished yet.

The cause of this delay partly is due to slow site clearance; the investors adjusting the design and technological lines; and impacts of the world economic downturn.

In early 2012, JFE Steel Corporation decided to contribute capital with E-United Group to implement the $4.5 billion steel project in Dung Quat Economic Zone.