Malaysian Lion, Vinashin Plan US$7.3Bln Steel Mill in Central Vietnam

Malaysian Lion Group and Vietnam Shipbuilding Industry Group (Vinashin) have agreed to build a US$7.3 billion steel factory in Vietnam’s central province of Ninh Thuan, Vietnam Economic Times (VET) reported Tuesday.

 

The two groups will jointly invest US$2.8 billion in the first phase and US$4.5 billion in the second, VET quoted Lion's chairman Tan Sri William Cheng as saying.

 

Without giving any date, Tan Sri William Cheng said the facility is expected to produce eight million tons of steel each year when it starts operating. He did not give any details of the investment ratio of each side.

 

Demand for steel products is rising fast in Vietnam. In Jan-Aug, the country was estimated to have imported 4.8 million tons of iron and steel with combined value at US$2.9 billion, up 25.5 per cent on year in terms of value and 54.9 per cent in terms of volume, according to the government's General Statistics Office.

 

As one of fastest growing economies in the world, Vietnam is forecasted to need 10 million tons of steel annually by 2010, 15 million by 2015 and 20 million by 2020, said Vietnam Steel Association, stressing that this will be a great opportunity for steel investors. (Vietnam Economic Times)