Dung Quat: continue to implement the 3 billion USD steel plant

Vietnam Guang Lian Steel Co., Ltd, investor of the project Dung Quat Guang Lian Steel Factory, said it will carry out to drive at Dung Quat Economic Zone in the middle of this month after more than 18 months suspended implemented by the impact of financial crisis the global economy.

Mr. Hsueh Hung Yi, General Manager of Vietnam Guang Lian Steel Co., has confirmed the above with the mission of the Ministry of Industry and Commerce in a meeting last week, according to Le Van Dung, Dung Quat Deputy Economic Zone Management Board.

Mr Dung said, the Vietnam Guang Lian Steel Co., has put the construction truck team on works on preparation for formal implementation of the project. Earlier, leader of Vietnam Guang Lian Steel company also said that the project financial difficulties has basically been resolved and this project is expected to start again in this quarter.

This invested-3-billion-U.S-dollar Works (expected to increase capital up to 4.5 billion dollars in the near future) has phase 1 capacity design is 3 million tons per year and 5 million tons per year for phase 2.

Until now, investors have been carring out work designing - planning plant, specialized ports, housing area for workers; setting up and approving the report of environmental impact assessment; planning materials , investigating the market; geological drilling, completing 80% of coral in the assembly of the first phase, negotiating on supply of equipment,etc. with a total capital about 25 million U.S dollars.

According to the Management Board of Dung Quat Economic Zone, up to now, the handover in the first period (222.8 hectares) of the project Dung Quat Guang Lian steel plant has been completed about 98%, for the area added to phase 1 (112 hectares), the Management Board also undertook to indemnify, releaseed complete approximately 71.8 hectares, the rest is about 40 hectares inventory, setting the compensation.

This project is from ore to steel furnace with high technology, one of the two largest current projects of the investment projects in Dung Quat Economic Zone. Accordingly, the first phase expected to be completed in mid 2013.

This is a joint venture between two companies, including Taiwan Tycoons and E-United, in which E-United holds the majority share. Investors also had changes in production technology such as wireless rearrangement line technology to increase efficence of investment in accordance with the project design implementation such as investment in bulk specialized port sync once in Phase 1, the layout together the material yard, sintered workshop, coke workshop, lime kiln,etc.

Steel plant project consisted of only the initial Tycoons investment with registered capital of more than 1 billion licensed in 2006. After that, E-United partnered with Tycoons to implement and improve the capital to 3 billion U.S dollars and to raise the total adjusted capital to 4.5 billion dollars in the up coming. "The capital increase is primarily to change the modern technology and more relevant", according to Mr. Dung.