Taiwanese-owned Guang Lian Steel Vietnam has resumed construction on a multi-billion-dollar steel plant in the central province of Quang Ngai, Vietnam the company’s general director, Hsueh Hung Yi, said.

The project in the Dung Quat economic zone had been put on hold for 18 months due to the global recession.

He confirmed that Guang Lian Steel had solved its financing problems and was preparing to relaunch the project at a budget increased from the previous $3bn to $4.5bn. Guang Lian, established by Taiwanese steel giants Tycoons and E-United, had already begun work on the plant and a workers residence.

With first-phase land clearance nearing completion, 223ha of the eventual 455-ha site has been handed over to Guang Lian.

The plant, when completed, will have a capacity of 3Mt/y in the first phase and 5Mt/y in the second phase. It will use blast-furnace technology and be one of the two largest projects in the economic zone. The first phase is expected to reach full capacity in 2013.

Source: VietnamPlus, Hanoi; Mar 2010