Formosa to expand capacity at Vietnam steel mill

Taiwans Formosa Plastics Group will continue expanding its Vietnam steel mill at Vung Ang Economic Zone, Ha Tinh province, to 30 million metric tons per year (mtpy) and generate sales of about US$45 billion a year, the Economic Daily News reported. The groundbreaking ceremony held on July 6 for the steel mill project involves an initial investment of US$8 billion and an initial annual capacity of 7.5 million tons. The first stage of the project is expected to be completed in 2011. Product range will include 1.5 million tons of merchant slabs, 2.5 million tons of merchant square billet and about 3.5 million tons of HR steel. Formosa Plastics Group will have a 95% stake in the new integrated steel mill, while 5% will be held by Vietnams Sunsco whose controlling stake is owned by Taiwanese Sun Steel Holdings. (June 23/July 7, 2008)