JFE leading way to zone

June 18, 2012 | 13:52

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High-profile Japanese investors plan to follow JFE Steel Corporation to Vietnam’s central Quang Ngai province after it moved to acquire a major stake in E-United Group’s $4.5 billion project.

The Dung Quat Economic Zone Management Authority last week received a group of Japanese investors who expressed interest in investing in Dung Quat Economic Zone, to supply the world’s sixth largest steel-maker.

Le Van Dung, management authority deputy director, said JFE Steel Corporation had significantly contributed to make the zone more attractive to investors, adding that other Japanese investors had contacted the authority to learn about its investment climate.

“After an investment by a big investor, there are always investments from suppliers. We expect to see a boom of Japanese investment here soon,” said Dung.

JFE had proposed to build a new steel manufacturing factory in Dung Quat in 2008, but it was never
implemented due to global economic recession. However, E-United Group’s project has proved just the ticket.

JFE, two months ago, announced it had signed a memorandum of understanding with the Taiwanese group to study the feasibility of building and operating an integrated steelworks in the zone, for which JFE Steel would be a majority shareholder.

A source at Guang Lian Steel, a subsidiary of E-United Group, said both sides were examining the feasibility of building and launching by 2016 a steelworks with an annual capacity of 3.5 million tonnes.If the study reaches a favourable conclusion, JFE would partner E-United to launch a steel production operation in Vietnam.