Hoa Phat to build iron and steel production complex

The Dung Quat Economic Zone Authority (DEZA) and Quang Ngai Industrial Park Management Board granted an investment certificate for the Hoa Phat Dung Quat iron and steel production complex to the Hoa Phat Group.

Construction will resume on the Guang Lian Dung Quat steel project, which had its investment certificate revoked in early September after 10 years of delayed construction. The project was under the development planning of steel production and distribution system by 2020, with a vision to 2025 approved by minister of Industry and Trade on January 31^st, 2013.

Leaders of Quang Ngai Province, Hoa Phat Group and Hoa Phat Dung Quat Steel Joint Stock Company attend the licence granting ceremony 

It will take up 372.7 hectares with a total investment capital of VNĐ60 trillion (US$2.65 billion).

Of the area, nearly 340 ha will be used for building factory and 27 ha for building a specialized port.

The project was designed to have an annual capacity of four million tonnes of steel products, including steel for construction and rolled steel. It is expected to be completed in four years.

The project, divided into two phases, will be equipped with modern and environmentally-friendly technologies of closed blast furnace which was successfully used at its steel production complex in the northern Hai Duong Province. The technology uses dry coke stamping technology, complete recovery of heat and exhaust gas, suppression of by-products to generate electricity and serve to return to production.

The annual capacity of the first phase will include one million tonnes of steel for construction and one million tonnes of high-quality rolled steel. The second phase is designed to produce two million tonnes of hot-rolled steel flat bar for machinery manufacturing.

Hoa Phat Dung Quat Steel Joint Stock Company committed to ensure the project’s progress and following all regulations.

It expects to earn US$2 billion in revenue per year and contribute VNĐ4 trillion to the State budget after the project comes into operation.

An estimated 8,000 jobs will be created for local residents.

The Quang Ngai Province’s leaders said they would create favourable conditions, accelerating land clearance and administrative procedures for the investor to complete its investment.

The project will be conducted over 50 years. It is part of the plan to develop a steel production and distribution network from now to 2020 and in a vision to 2025 approved by the Ministry of Industry and Trade.

It was approved by the Prime Minister at the document No 152/TTg-CN on January 25.

                                                                                                          HPG