Vietnamese Steel Producer Eyes Investment in Mill Project
11/03/2015 - Vietnamese steelmaker Hoa Sen Group is looking to take over an on-again, off-again steelworks development project in the central province of Quang Ngai, reports the Tuoi Tre News website.
Citing local reports, Tuoi Tre News said the company intends to sign a cooperation agreement with the Quang Ngai Province People’s Committee on the idled project, estimated to cost US$3 billion.
The project, named Guang Lian, was first proposed in 2006 by a Taiwanese investor, which later later sold its stake in the project to another firm. But when the global financial crisis hit, the project was halted.
In 2012, Japan’s JFE Steel unexpectedly announced it would acquire a controlling stake in the project and increase its designed annual production capacity from five million tons to seven million tons annually.
However, the company ultimately abandoned the project in favor another proposed steel works to be built the north-central province of Ha Tinh.
According to Tuoi Tre News, the Hoa Sen Group has yet to decide on whether to seek a new investment license from provincial authorities or receive the project directly from a former stakeholder.
The project, named Guang Lian, was first proposed in 2006 by a Taiwanese investor, which later later sold its stake in the project to another firm. But when the global financial crisis hit, the project was halted.
In 2012, Japan’s JFE Steel unexpectedly announced it would acquire a controlling stake in the project and increase its designed annual production capacity from five million tons to seven million tons annually.
However, the company ultimately abandoned the project in favor another proposed steel works to be built the north-central province of Ha Tinh.
According to Tuoi Tre News, the Hoa Sen Group has yet to decide on whether to seek a new investment license from provincial authorities or receive the project directly from a former stakeholder.
