Posted on 27 Jul 2016
Hoa Sen Group (HSG) plans to develop a multi-billion-dollar steel complex with an annual capacity of up to 15 million tons in Ca Na Industrial Park (IP) in the central coastal province of Ninh Thuan.
Le Phuoc Vu, chairman of HSG, told an export promotion conference organized in HCMC on July 19 by the Ministry of Industry and Trade that the Prime Minister and the authority of Ninh Thuan Province have given the go-ahead to the project.
Vu said HSG will be able to raise sufficient finances for the steel project and execute it in phases. He added that the group can now buy production equipment at prices which are 50% lower than before.
HSG said on its website that the steel would require 1,700 hectares and a total investment cost of US$3.8 billion.
HSG plans to hold an extraordinary shareholder meeting in HCMC in September to seek shareholders’ nod for the steel complex and issues of the 2015-2016 fiscal year. It will ask for their approval of investment phases, capital for each phase, scale, investment form, technology, partners and suppliers of the project.
Vu said at a meeting with leaders of Ninh Thuan in October last year that the group had picked the province to carry out the project as it has advantages in iron and steel transport, especially by sea, as well as policy incentives to woo investors.
The province said on its website that the steel project is in line with its investment attraction policy and the Government’s plan to develop Ca Na IP and Ca Na deep-water port. The province pledged to create favorable conditions for the group to implement the project.
However, leaders of the province told HSG to develop a modern steel complex to minimize its impact of the environment.
HSG can turn out 1.2 million tons of steel per year. The group is moving on with a number of new projects in different parts of the country, including a big investment in Dong Hoi IP in Dong Nam Economic Zone in the north-central province of Nghe An.
Vu said HSG looks to export more than US$1 billion worth of steel products in the next five years.
