Posted on 10 Dec 2015
Vietnam steel producer proceeds with giant mill despite oversupply worries
A subsidiary of Hoa Sen Group, one of Vietnam's biggest steel
producers, has acquired a license to develop a VND2-trillion (US$87.48
million) mill in the central province of Binh Dinh.
Work on the factory of Hoa Sen Nhon Hoi-Binh Dinh Co., Ltd. is
scheduled to start this month and complete in June 2017, with a designed
capacity of 200,000 tons a year.
Last month Hoa Sen Group along with another steel giant, Hoa Phat
Group, were reported to be seeking to take over a multi-billion dollar
steel project in the central province of Quang Ngai, after Taiwanese
investors dropped it due to financial reasons.
With their expansion plans, the giants have apparently stayed
unaffected by the oversupply and cheap imports, which were believed to
have driven many local producers to the verge of shutting down.
In its recent plea for the government's help, the Vietnam Steel
Association said local steel output is estimated 22 million tons a year
with supplies of many products already doubling local demand. It urged relevant agencies to delay 27 steel plant projects.
The association also sought the government's intervention in the
increasing cheap imports from China, such as increasing tariffs.
Vietnam imported 12.62 million tons of iron and steel in the first
ten months, up 34 percent year on year and posting the revenues of
US$6.28 billion, according to official figures. More than 61 percent of
the imports were from China.
