Vietnam’s Vinashin Business Group and Malaysia’s Lion Diversiffied Holding Behard Group are seeking to invest roughly US$10 billion in a steel complex in central Ninh Thuan province, the VietNamNet reported.
Ninh Thuan authorities have sent a document to the prime minister, proposing approving the Ca Na steel complex.
The project investors, Maju Stabil Sdn Bhd, a member of Lion Group, and Vinashin want to set up the Vinashin-Lion Steel Co. Ltd., in the province with total registered capital of VND12.48 trillion (some US$756.363 million) with Maju Stabil holding a 70 per cent stake and Vinashin the remainder of 30 per cent.
The hi-tech steel complex, set to cover 1,650 hectares of land, will have an annual capacity of 10 million tons a year.
The project will also include supporting works – two 1,450 MW electricity plants and a seaport with an annual capacity of 50 million tons.
In the first phase, from 2008 to 2010, the complex will be developed on an area of 662 hectares of land to turn out 4.5 million tons of steel per year. In the second phase, the complex’s capacity is scheduled to be raised to 10 million tons per annum.
The feedstock for the operation of the complex will be iron ore to be imported and coke coal to be bought domestically. Products from the complex are to serve domestic demand, especially for the shipbuilding industry and to export.
Ninh Thuan authorities have proposed adding the project to the plan of industries of steel, electricity and seaport and approving the project in principle because the implementation of such a large project will create a breakthrough for the province’s socio-economic development.
However, according to the Vietnam Steel Association, Lion Diversiffied Holding Behard is not listed among the world’s large steelmakers and Maju stabil Sdn. Bhd Company was just established on May 24, 2007.
Meanwhile, Vinashin specializes in shipbuilding and is inexperienced in producing steel and electricity. The group’s financial capability is limited while it is also carrying out a number of projects. (VietNamNet)
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