It is reported that Formosa Plastics Group is expected to break ground to build a large steel mill in Vietnam at the end of 2009. Vietnamese government signed a land handover contract with the FPG.

The agreement said that the Vietnamese government will hand over 1,900 hectares on February 28th 2009 to the FPG to build a large steel mill, and another 1,300 hectares at the end of this year for the FPG to build petrochemical complex. Building the first stage of the steel mill will cost the FPG at least USD 8 billion.

The Vietnamese government has allowed the FPG to rent the land totaling 3,200 hectares for 70 years at the price of TWD 180 million. The massive investment project shows the FPG is not slowing down amid the economic slowdown. The FPG will first build an industrial harbor near the acquired land to ship products from the prospective steel mill.

The FPG estimates the establishment of the first blast furnace in the steel mill will be completed in 36 months, and predicts the first stage construction of the steel mill will be completed and begin mass production in 50 months.

(Sourced from news.cens.com)