Formosa pours huge money for its site clearance

March 01, 2014 | 16:04

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Taiwan’s Hung Nghiep Formosa Ha Tinh Steel Limited Company has poured $1.166 billion for its site clearing at its giant steel and port complex in the central province of Ha Tinh.

According to the company’s latest report, it has poured that amount of money for its sucking sand as well as smooth the surface of its steel project, a 2.6 times higher than initial estimate.

Formosa Plastics Group, the largest private conglomerate in Taiwan, gained an investment certificate for developing this mammoth integrated steelwork in the central Ha Tinh province six years ago. The construction was delayed till 2010 because of site clearance issue.

Formosa started construction on the project in 2011. The project has the total registered investment capital of approximately $10 billion, and annual production capacity of 7.5 million tones of steel. Formosa is the dominant shareholder of the project with 95 per cent and China Steel – Taiwan's largest steel maker – holds 5 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 production would go to supplying the domestic market and the rest will be exported.

By By Phuong Thu

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