The prolonged delay commenced Guang Lian Steel-Dung Quat project is seen in Dung Quat Economic Zone in Quang Ngai Province. — Photo diendandoanhnghiep.vn

QUANG NGAI (Biz Hub) — Local steel maker Hoa Phat Group has joined the long-delayed Guang Lian Steel-Dung Quat project as new investor.

The Dung Quat Economic Zone Authority (DEZA) confirmed with the Viet Nam News that the province has submitted plans to ministries and relevant state agencies after a meeting with Hoa Phat Group.

DEZA said Guang Lian Steel Viet Nam Company, the former owner of the project, had failed to garner funding to continue the project after five adjustments to its investment licence in nine years.

The central province revoked  337ha of land—out of the total 500ha project—to build the Guang Lian Dung Quat Steel Factory in Binh Son district in a decision last month.

A source from Hoa Phat Group told Viet Nam News that the group would invest VND60 trillion (US$2.7 billion) to build a hot-rolled steel and construction steel project on an area of 350ha.

According to DEZA, Hoa Phat Group proposed a plan to develop the steel project with a capacity of four million tonnes per year after operation.

DEZA said the new project needs approval from the Prime Minister.

In 2006, the Guang Lian Dung Quat Steel Factory was given the green light with an initial investment of over $1 billion by the Tycoons Group (Taiwan) before increasing to $3 billion in collaboration with E-United Group (Taiwan)

The groundbreaking ceremony took place in 2007, but construction did not begin then.

Early in 2012, JFE – the second-largest steel producer in Japan – partnered with E-United Group and contributed capital to the now $4.5 billion project in the zone, but JFE decided to withdraw from the project in 2014.

In March, 2016, following the committee's inspection of the project, the project's investor again submitted a proposal with an investment of $2.2 billion. However, the committee decided to withdraw the land since the investor had violated Land Law 2013.

The province had spent a total budget of VND223 billion to clear land and handed over 337ha, out of 504ha, to investors (73.25 per cent of total land area).

In a report from investors, it carried out $73 million in construction of house blocks for workers, land clearance, walls and pile driving between 2006-14. The project is one of the most delayed investments in the province. — VNS