Formosa Plastics’ steel blast furnace hits halfway point

According to the group, 54 per cent of the blast furnace has been completed so far. Meanwhile, construction of a seaport, dam and 650 megawatt thermal power plant are also under construction.

“This achievement reflects our great efforts to implement this project in Vietnam,” said an officer of Formosa in Hanoi, who asked not to be named. “We are gathering all our strength to meet the construction timeline. I believe the first blast furnace will be completed in May 2015.”

He also said the Taiwanese firm was very positive about the Vietnamese market, even though the market was struggling, as it has seen the government’s resoluteness to stabilise the economy.

Formosa started construction on the project in 2011, after three years waiting for site clearance. The project has the total registered investment capital of approximately $10 billion, and the annual production capacity of 7.5 million tonnes of steel. Formosa is the dominant shareholder of the project with 95 per cent and China Steel -Taiwan’s largest steel maker, holds five per cent.

According to Formosa, the project will comprise six blast furnaces, a 32-berth seaport, and a 2,150 megawatt thermal power plant. Construction will run through 2020.

The investor noted that 50 per cent of the facility’s output would supply the domestic market and the rest would be exported

Six months ago, Formosa confirmed with VIR that it would increase the total production of the steel complex to 22.5 million tonnes.

This is not Formosa’s only steel interest in Vietnam. It also holds five per cent of China Steel’s Sumikin steel complex in the southern province of Ba Ria-Vung Tau. The $1.15 billion project began commercial operations last October, supplying products for the production of automobiles, home appliances, building materials, and shipbuilding.