Vietnam - Formosa ready to prove doubters wrong

Formosa Plastics Group last week started building the first blast furnace for its $10 billion steel and seaport complex in central Vietnam, dispelling doubts about its commitment.

This is also a new step into steel manufacturing business of Formosa Plastics Group (FPG), Taiwan’s largest conglomerate of biotechnology, petrochemical processing and electronic production.

This blast furnace is one of the three planned to be built at the project in Vung Ang Economic Zone, Ha Tinh province. FPG plans to complete construction of the first within three years and put it into commercial operation at the end of 2015, one year later than the initial schedule because of the delay in master designing work.

“Many people doubt over our ability to develop such a huge project. But we are proving that we are serious with our commitment,” said a Hanoi-based representative of Formosa Ha Tinh Steel Corporation, which FPG established to develop this project.

In 2008, FPG registered to build a 7.5 million-tonne steel factory and a deep-seaport with total investment capital of $7.9 billion. But the source said investment capital was estimated to increase to around $10 billion. The group, at the end of 2010, revealed that it had planned to increase total annual output capacity to 22 million tonnes.

The Taiwanese investor is constructing the first phase of the 250 hectare, 14-berth Son Duong port, a hostel for workers, office buildings and a 427-room guest house. It has also completed leveling 961 hectares out of 1.966 hectares of land, or 48.9 per cent of the site.

FPG reported that it had already arranged $2 billion for constructing this project. FPG’s port and steel manufacturing factory complex is expected to be a driving force for the development of Ha Tinh and the central region. The investor estimated the project, once completed, could create 10,000 direct jobs and about 100,000 indirect jobs.

Vo Kim Cu, chairman of Ha Tinh People’s Committee, said the implementation of Formosa’s project would help attract more investments to Vung Ang economic zone while breathing new life into other projects in the zone.

Ngoc Linh | vir.com.vn

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