Vietnam-based steelmaker Hoa Sen Group (HSG) has announced that it will sell two out of six companies that are involved with the Ca Na Steel Project in Ninh Thuan Province, which costs a total investment of $10 billion. The company will dissolve the remaining four companies, SteelOrbis understands.
“The current objective situation is no longer consistent with the original strategic goals when HSG promoted investment projects in 2016,” said HSG’s board of directors.
In April 2017, Vietnamese prime minister Nguyen Xuan Phuc requested the suspension of the Ca Na steel project in order to clarify some issues related to the environment and domestic steel demand. He asked HSG and the Ninh Thuan Province authorities to review the project.
HSG will now focus its resources on the production and business segments. The group also aims to develop a distribution network to become the leading retail chain for construction materials in Vietnam in the coming years.