Tycoons Group and E-United Group have arrived at a deal in a steel joint venture in Dung Quat Economic Zone (DQEZ), Quang Ngai province yesterday, July the 18, 2007, with approval in principle and eyewitnessing by Quang Ngai Government top leader, Chairman of Quang Ngai Provincial People’s Committee Nguyen Xuan Hue.
E-United, established in 1978, is one among the Taiwanese leading steel making groups. The group, however, is not confined its business to steel making, but in fact has developped into a multi-sectoral group covering a wide range of business, including real estate, health care, education with total assets of up to USD 4.7 billion. The group has 6 subsidiary companies either making or trading in steel with their 2006 aggregate turnover of over USD 6 billion.
The two groups claimed in the mentioned meeting with Quang Ngai Provincial People’s Committee yesterday that the collaboration between the two giants should drive the investment capital for the steelmill up to USD 1.8 billion instead of the originally estimated figure of USD 1.056 billion. More important than that, the cooperation of these two titans should also shorten the project’s timing schedules without changing the designed capacity of 5 million tons/year of the proposed steel making factory.
Chairman Hue welcomed the two groups and appreciated the cooperation of the two colossal businesses, and he simaltaneously requested both Tycoons Group and E-United Group to finalize any formalities necessary in the shortest time and to closely work with the local authorities to ensure the schedules of the project.
In fact, Tycoons Group was earlier granted investment certification by competent body of Vietnam side for the steelmill project to be built on an area of over 450 ha in DQEZ with total capital of USD 1.056 billion, and designed capacity of 5 million tons/year. In accordance with this initial proposed schedules, the project was phased into two stages, and the first phase should have been mobilized months ago. However, the project has been delayed for some reasons or others.
Dung Quat Steelmill is a large-scale project to be implemented in DQEZ, its investment plan used to be seen as a rocket engine to thrust Quang Ngai into the country’s top 5 provinces in terms of gaining foreign direct investment (FDI). Together with Dung Quat Refinery Project and other large-sized heavy industries in DQEZ, this steel producing plant shall form a strong heavy industrial base in Vietnam.
The handshake of the two giants shall undeniably create a new “wind of change” not only to this specific steel project but also to this economic space on the whole.
The steelworks is expected to mobilize some time in mid October this year.
Tri, Nguyen Minh
