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| TITLE |
Vietnam puts on hold major steel projects |
| WRITER |
administrator |
DATE |
2009-04-13 09:29:02 |
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Vietnam puts on hold major steel projects
Sunday, 12 Apr 2009
VietNamNet Bridge reported that a number of huge steel mill projects have been either put on hold or delayed for a long time. A most recent ministry of industry & trade inspection of key steel projects found that only 17 among 23 steel projects prioritized for implementation in 2007-2015 had got off the ground.
The high profile project with involvement of Essar Steel with a 65% stake, Vietnam Steel Corporation (20%) and Vietnam Rubber Group (15%) has been hanging in the balance. The investors originally planned to inject more than half a billion dollars into phase one of the hot strip mill with an initial capacity of two million tons a year but Essar is seeking a local partner to transfer its stake.
Mr Nguyen Manh Quan head of the ministry’s Heavy Industry Department said that Essar Steel had proposed suspending the project in Phu My Industrial Zone in Ba Ria-Vung Tau Province due to financial constraints and tough market conditions. Taiwan’s Thien Huong stainless steel project was licensed in 2006 but the investor has lost the license due to long delays.
In another 18 steel projects which are being developed in 2007-2015, four have not been able to go ahead as scheduled, including the cold rolled steel plants of Lilama, Formosa and Bach Dang, and phase two of Phu My steel plant.
Mr Pham Chi Cuong chairman of Vietnam Steel Association said that "If the projects fail to conform to the approved schedules without due reasons, their licenses should be revoked." He added that authorities should keep a close watch on the pace of large foreign invested projects, proposing a ban on stake transfers from one investor to another.
Sourced from www.vietnamnet.vn |
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