Formosa Plastic Group (FPG) has announced its decision to invest in an integrated steel plant in Vung Ang Economic Zone, in Ha-Tinh Province, Vietnam.
Total capital investment will be about $8 billion and will be implemented in two phases. Phase one will involve the construction of a blast furnace with an annual production capacity of 7.5 million mt and two semi-finished product mills, including a continuous slab caster with an annual production capacity of 2.25 million mt and a continuous billet caster with an annual production capacity of 1.5 million metric tons, and also a HRC rolling mill with an annual production capacity of 3.75 million mt. During the second phase another blast furnace with an annual production capacity of 7.5 million mt will be installed.
In addition, the company will invest $790 million in the construction of a new deep water port and in infrastructure in Son-Duong Port to facilitate raw material import and finish product export.
The investors will include major FPG subsidiaries Na-Ya Plastic Corp, Formosa Petrochemical Corp., Formosa Chemical, and Fiber Corp., each holding a 22.5 percent stake in the new company, with Formosa Heavy Industries Corp. holding five percent of shares in the new steel mill.
The new investment will start to be implemented in the second half of 2008, with production expected to start by 2011.