$1.15bn steel project comes online in style
$1.15bn steel project comes online in style
A $1.15 billion integrated steel factory in southern Ba Ria-Vung Tau province, backed by a joint venture led by Taiwan’s China Steel Corporation, went into commercial operation last week.
It officially opened its representative office late last week after completing the factory construction and run test according to a source from the Vietnam Steel Association.
Located in Ba Ria-Vung Tau’s My Xuan A2 Industrial Park, China Steel Sumikin’s project will be among the largest steel factories in Vietnam, capable of producing 1.6 million tonnes of steel each year.
This is a joint venture led by Taiwan’s largest steel-maker, China Steel Corporation, which holds a 51 per cent stake and other shareholders include Japan’s largest steel-maker Nippon Steel & Sumitomo Metal Group, Chun Yuan Steel Corporation, Hsin Kuang Steel Corporation and Formosa Ha Tinh Steel Corporation.
The project was initially licenced in 2009, and construction began in September 2011.
Its products include hot rolled steel plate, pickled and oiled steel sheet, cold rolled steel sheet, hot-dip galvanised steel sheet, and electrical steel sheet for shipping industry, automobile, motorcycle, electric and electronics that Vietnam has to depend on for imports.
Once operating, China Steel Sumikin will also support for the manufacturing industry of Vietnam. Even though Vietnam is facing a glut of construction steel, the nation still has have to import a large volume of steel serving for manufacturing industry, including automotive industry, shipbuilding and electronics.
Pham Chi Cuong, chairman of the Vietnam Steel Association, said the operation of integrated steel factories like China Steel Sumikin would be important for Vietnam’s steel industry because it could ensure the special steel supply while reducing steel imports into the country.
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