Taipei, Dec.5, 2012 (CENS)--Being optimistic about steel markets in Southeast Asia and to tap preferential tariffs in Association of Southeast Asian Nations (ASEAN), Formosa Plastics Group's (FPG) is investing to build a steel mill in Ha Tinh, Vietnam that is expected to be completed by 2020 in two phases and four stages, to have six blast furnaces and 22.5 million tonnes of crude steel capacity annually. The first blast furnace is expected to go online by the end of May 2015, targeting the Southeast Asia market.
A representative of FPG noted that, despite Southeast Asia having become the world's fastest-growing steel market, most downstream steel makers rely on imported steel due to lack of large-scale blast furnaces, converters, and inadequate capability in crude steel production.
The steel mill in Vietnam is jointly invested by FPG (95%) and China Steel Corp. (5%), with US$10 billion invested in the first phase to produce 7.07 million tonnes of crude steel and sell 6.82 million tonnes of steel materials.
A representative of FPG indicated that apart from the steel mill, the investment also includes constructions of port piers and a power station, which are expected to be completed gradually by 2020, when the steel mill with six blast furnaces will produce 22.5 million tonnes of crude steel annually, the 32 piers to offer 85 million tonnes in transport capacity, and the power station to generate 2150MW of electricity.