Trung Nam Construction Investment JSC, a member of Trung Nam Group, took over the Ca Na complex from Hoa Sen Group to develop a liquefied natural gas (LNG) power project.
|Trung Nam has been transferred Hoa Sen Group's steel complex in Ca Na to develop an LNG project
However, the deal's value between Trung Nam and Hoa Sen was not disclosed.
According to Nguyen Lam Tien, general director of Trung Nam Group, the Ca Na project complex was invested by Hoa Sen Group with the aim to develop a steel manufacturing plant, however, the investor’s plan was not approved, thus Hoa Sen decided to withdraw from the project.
After the transfer, Trung Nam will develop a liquefied natural gas (LNG) power project on the area.
Besides, the group will also buy the surrounding area to invest in an industrial zone (IZ) to manufacture electronics and circuit boards.
Trung Nam's plants in the above IZ will serve as outsourcing manufacturing facilities for circuit board production for partners and will not produce the group's own electronics products such as television sets and smartphones. According to the plan, the group will build five circuit boards manufacturing plants in the IZ.
The group's LNG power project has favourable conditions for implementation because in early April, the prime minister approved the suggestion of the Ministry of Transport to add an LNG import terminal to the Ca Na LNG Power Complex which lies within close distance to Trung Nam Group's project.
Previously, in July 2020, Hoa Sen issued plans to divest from its two subsidiaries responsible for component projects it has transferred to Trung Nam. The first one is Hoa Sen Ca Na-Ninh Thuan International General Port One Member Co., Ltd. (the investor of the Ca Na Seaport project). The second one is Hoa Sen Ca Na Industrial Zone Infrastructure Investment Co., Ltd. – Ninh Thuan (the investor of the Ca Na Industrial Zone Infrastructure Investment project). These two companies have charter capital of VND50 billion ($2.17 million) each, 100 per cent contributed by the group.