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Taiwan firm gets OK to build steel plant in Vietnam

Tycoons Worldwide Group (聚亨企業集團) officially received a license from the government of Vietnam yesterday to invest US$1 billion in a steel plant to meet growing local demand.

Tycoons Steel International Co, a subsidiary of the Taiwanese giant in Vietnam, is to build a steel refinery and rolling mill with a capacity to process 5 million tonnes of steel ingots a year.

The plant will be located in the Dung Quat Industrial Zone, in Quang Ngai central province, where the country's first oil refinery will also be located.

"It is expected that, with industrialization of Vietnam and more infrastructure building projects to start up, the steel product demand will have a distinct increase in the near future," the group said in a statement.

As much as 70 percent of total output at the new facility has been earmarked for the domestic market, the state-controlled Vietnam News Agency said last week.

Vietnam currently imports more than 3 million tonnes of ingot steel each year.

Tycoons will invest US$539 million to build a mill to produce 2 million tonnes of ingots per year in the first stage, to be completed in 2009.

The second stage ending in 2013 will require another US$500 million to expand the factory's capacity by 3 million more tonnes.

The company is already operating a cold-steel rolling plant in Ba Ria-Vung Tau, a southern province.

Vietnamese steel mills are expected to produce 3.8 million tonnes of construction-grade steel this year, 3.5 million tonnes of which is to be sold on the domestic market, Vietnam Steel Association VSA said.
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