Formosa looks to expand projects in Vietnam

The firm (FPG) made this declaration at  an investor conference this month, according to Taiwanese media. It cited its low profitability in China as the main reason.

The latest announcement reaffirmed the long term commitment expressed by  FPG’s president Wang Wen-yuang when he attended a ceremony for the construction of first blast furnace at FPG’s $10 billion steel integrated steel factory in Ha Tinh early this month.

“Vietnam is very important market to our company. We will increase investment in Vietnam not only in steel industry but also in other industries,” he said at the ceremony.

FPG currently owns a manufacturing complex worth approximately $1 billion in southern Dong Nai province, including a fiber factory, a power plant and a waste water treatment plan.

The group is also constructing the $10 billion steel manufacturing and seaport complex in Ha Tinh, expected to be operational by 2015. This is the first steel project of FPG in the world and will produce 7.5 million tonnes of steel each year.  Also under construction in FPG’s massive complex is the first phase of the 250ha, 14-berth Son Duong port, as well as  apartments for workers, office buildings and a 427-room guest house. About 1,966 hectares are set aside for the project, of which 961 hectares have been levelled so far— 48.9 per cent of the site.

FPG’s long-range plans in the province also include a large oil refinery and petrochemical complex nearby the steel integrated factory.

Hong Fu-yuan, president of Formosa Chemicals and Fibre Corp, a subsidiary of FPG, was quoted by Taiwanese media as saying that his company also had plan to expand business in Vietnam, while reduce reliance on China market.

He said his recent visit to Vietnam showed him that business opportunities here were immense.