Guang Lian Vietnam Steel Co Ltd, the investor of Guang Lian Dung Quat steel mill, said that it will start the work in Dung Quat Economic Zone in the middle of this month after over 18 months of standstill due to the affects of the global financial economic crisis.
Hsueh Hung Yi, general director of Guang Lian Steel Vietnam confirmed this as talking with Vietnamese Ministry of Industry and Trade last week, according to Le Van Dung-vice head of Dung Quat EZ management board.
The steel mill project has total investment capital of $3 billion, which could be raised to $4.5 billion in the near future. Designed capacity for Guang Lian Dung Quat steel mill is three million tonnes a year (Phase 1) and five million tonnes/year (Phase 2). Phase 1 is expected to complete in 2013.
To date, the handover of ground Phase 1 (222.8 hectares) of Guang Lian Dung Quat steel mill has been nearly finished.
Guang Lian Vietnam Steel is the joint venture between two Taiwanese firms including Tycoons and E-United.
Starting the steel mill project in 2006 was Tycoons with an initially registered capital of $1 billion. After that, E-United Co cooperated with Tycoons to co-raise the investment capital to $3 billion.
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