Taiwan's Formosa Plastics adds $346m more to the new $10.7b plant in Vietnam

[Viet]

http://m.nasdaq.com/article/taiwans...el-plant-investment-by-346-mln-20170317-00129

Taiwan's Formosa Plastics to boost Vietnam steel plant investment by $346 mln

TAIPEI, March 17 (Reuters) - Taiwan'sFormosa Plastics Group will boost investment for a $10.7-billion steel project in Vietnam, hoping to launch production in the fourth quarter, after delays over the plant's role in an environmental disaster, an executive said on Friday. Formosa Ha Tinh Steel will step up capital by $346 million to invest in enhanced environmental safety measures, raise working capital and buy material, Chang Fu-ning, an executive vice president of the conglomerate, told Reuters.

The enhanced measures include a system to be developed with the government of Ha Tinh province for real-time monitoring of water disposal and air output, and an eco pool to strip toxins from water before it goes into the sea.

The company has paid $500 million in compensation for last year's disaster, which killed more than 100 tonnes of fish and devastated the environment, jobs and economies in four provinces, fuelling public outcry against the Hanoi government and Formosa, one of Vietnam's largest investors.

"We're pushing hard to finish our environmental safety improvement measures by the end of March," Chang said by telephone. "The government's investigation team has given us positive feedback on our progress."

Formosa Ha Tinh has sought provincial authorities' approval to raise the investment capital, Hanoi media said on Friday. [nL3N1GU1IP]

 

[Viet]

A giant industrial complex ever constructed in Vietnam: Formosa Plastics. Hopefully going live this year.

 

[Shotgunner51]

$10.7-billion steel project

step up capital by $346 million

So this is a $11 billion steel project, that's massive! Given the pace of infra boom in Vietnam as well as in neigbouring markets, investment of such scale could be justified. On the other hand, last year steel production in Taiwan was already 21.57 million tonnes, it's beneficial for steelmakers like Formosa to tap into overseas markets for growth.

 

[Echo_419]

So this is a $11 billion steel project, that's massive! Given the pace of infra boom in Vietnam as well as in neigbouring markets, investment of such scale could be justified. On the other hand, last year steel production in Taiwan was already 21.57 million tonnes, it's beneficial for steelmakers like Formosa to tap into overseas markets for growth.

View attachment 385658

Strange, i thought we had already overtaken Japan to become the second-biggest steel maker in the world

 

[Viet]

So this is a $11 billion steel project, that's massive! Given the pace of infra boom in Vietnam as well as in neigbouring markets, investment of such scale could be justified. On the other hand, last year steel production in Taiwan was already 21.57 million tonnes, it's beneficial for steelmakers like Formosa to tap into overseas markets for growth.

View attachment 385658

The Formosa Vietnam steel factory will produce 22.5m ton steel a year, more than all Taiwanese steel factories combined. That will add to the current 11m ton steel production of domestic companies. But that is just the beginning. There are at least two more steel projects with 20m ton steel a year. Vietnam imported some 16m ton steel last year, most from China.

http://asia.nikkei.com/Business/Trends/Vietnam-s-steel-industry-bulks-up-against-China?page=1

 

[Shotgunner51]

Strange, i thought we had already overtaken Japan to become the second-biggest steel maker in the world

Close to but not yet by 2016.

http://www.worldsteel.org/steel-by-topic/statistics/Monthly-crude-steel-and-iron-production.html
https://defence.pk/pdf/threads/chin...the-rest-of-the-world-combined.457241/page-20​

However given the Indian population size and potential for infra construction, it's bound to happen sooner or later. Moreover Japanese steelmakers are focusing on special steel (Japan is by far the largest exporter of special steel, e.g. HSS, pressure vessel, aerospace alloy, die steel, bearing steel) of which overall tonnage is lower by nature, and also note they are increasing produce in overseas sites.

The Formosa Vietnam steel factory will produce 22.5m ton steel a year, more than all Taiwanese steel factories combined.

A 22.5 million tonnes p.a. plant is just massive!

That will add to the current 11m ton steel production of domestic companies. But that is just the beginning. There are at least two more steel projects with 20m ton steel a year. Vietnam imported some 16m ton steel last year, most from China.
http://asia.nikkei.com/Business/Trends/Vietnam-s-steel-industry-bulks-up-against-China?page=1

So we are looking at 70-80 million tonnes p.a.? That's huge. I believe it's not just driven by infra boom or urbanization, but by rapid industrialization, good news.

 

[Viet]

A 22.5 million tonnes p.a. plant is just massive!

So we are looking at 70-80 million tonnes p.a.? That's huge. I believe it's not just driven by infra boom or urbanization, but by rapid industrialization, good news.

Vietnam imported 18.4m steel last year, much higher than expected. So the new Taiwan steel plant can theoretically sastify the gap. Given Vietnam growth rate close to 7 pct, steel demand by 12 pct, we can expect Vietnam steel production by 100m a year in a decade. That is close to the level of Japan. From zero to 100m, I think that is not too bad.

http://ampe.vnexpress.net/news/business/vietnam-s-steel-imports-hit-record-high-in-2016-3532890.html