Steel makers prevent China Steel plan

The prime minister last week turned down a proposal by Taiwanese giant

China Steel to build a US$500-million cool-rolled sheet steel plant in the

country, reasoning that if allowed, it would negatively impact local

producers.

The prime minister’s decision was in response to a proposal jointly made

by the Ministry of Planning and Investment (MPI) and the Ministry of

Industry (MoI) after China Steel entered an application for a cool rolling

sheet steel plant in the southern province of Dong Nai. The ministry’s

insiders attributed the refusal to the fact that China Steel’s plan was

not in line with the approved steel development strategy for 2010 and had

a good chance of causing supply to exceed demand.

Although Vietnam currently relies on 300,000 and 400,000 tones of imported

cool rolling sheet steel annually, the country’s steel conglomerate

Vietnam Steel Corp. (VSC) forecasts that domestic demand will be satisfied

by 2004 when its US$135-million steel plant becomes operational. The VSC

plant is under construction in Ba Ria-Vung Tau Province, and is designed

to produce 405,000 tonnes per year.

 

Category: Business