Tiếng ViệtJFE Steel Corporation (Japan) has decided to participate in the iron and steel complex project of Formosa Group as the main investor in Vung Ang, Ha Tinh.
It is expected that in August, the parties will reach an agreement on JFE’s contribution of about 5% of the project capital (equivalent to 30 billion yen; about 242 million USD), and JFE will provide technical support during the sale processing phase. finished product.
After this agreement, JFE will become the first Japanese steelmaking corporation to invest in this field in Southeast Asia.
According to JFE’s assessment, after participating in the project, JFE will export semi-finished products from the project in Vietnam to replace semi-finished products that were exported from Japan.
In the immediate future, JFE will focus on rebar products in the construction sector. In the future, JFE will expand steel plate products towards the field of automobile manufacturing. JFE is also calculating the possibility of contributing capital to the second phase of the project.
China’s economy is slowing down, causing the country’s steel demand to decline, leading to a situation where supply exceeds demand. However, when deciding to participate in the steel project in Vietnam, JFE aims to build a stable steel supply source for Japanese companies that are investing heavily in Southeast Asia.
According to JFE’s calculations, blast furnace technology will help businesses compete on price and JFE will likely expand profits in the medium term from this project.
The steel project invested by Formosa Group (Taiwan) in Vung Ang, Ha Tinh, with a capital of phase one of up to nearly 10 billion USD, will be put into operation in 2016 with an output of 7 million tons of steel. /year. The project is a comprehensive iron and steel complex, including a deep-water port.
It is expected that Formosa will continue to invest another 10 billion USD in the second phase of the project, bringing the capacity of the complex to 20 million tons of steel per year.
