The domestic steel billet production has reached five million tons per year and is enough for local production as the Pomina 3 steel plant located in Ba Ria-Vung Tau Province officially went into operation on Wednesday.
The plant can produce one million tons of steel billet and one million tons of building steel per year, said Do Duy Thai, general director of Pomina Steel Co.
Thai told the Daily upon the plant inauguration on Wednesday that the domestic steel billet demand of steel plants was currently around five million tons per year while the domestic supply exclusive of the new plant output was only four million tons.
According to Thai, the current import price of steel billet is some $650 per tonne. Meanwhile, Pomina’s steel billet plant using the Tenova technology of Italia and SMS-Concast technology of Germany has a low power consumption. Therefore, the new plant can help Pomina save some 30 million kWh of power each year, and its products will be sold at a lower price compared to import steel billets.
The Pomina 3 steel project worth around $300 million consists of a steel billet plant, a building steel plant and a seaport for its own transport demand.
With this project, Pomina has had three steel plants which have a total production of two million tons of building steel per year.
The building steel supply has exceeded the domestic demand, and thus Pomina is boosting steel export to Arabian countries, Myanmar and the US and will raise its export proportion from 12 per cent to 30 per cent of its total production capacity in the coming time, Thai said.