Formosa will evaluate the first phase of the giant steel complex in Vietnam before beefing up its investment. (Source: Dau Tu newspaper)
Formosa has planned to poured 10.5 billion USD into the first phase of the project, which includes Son Duong deep-water port, with two steel furnaces having a combined annual capacity of seven million tons of crude steel and 11 piers.
If Formosa raises its investment up to $26 billion, the steel complex will have six furnaces with a total capacity of 22.5 million tons of crude steel per year and the port will have 32 piers with a throughput capacity of 85 million tons a year.
The Taiwanese group will evaluate the first phase of the project, look into its financial situation before making a final decision, the Dau Tu newspaper cited a Formosa representative as saying, adding a steel oversupply in China will pose risks to the expansion plan.
Formosa is trying to put the first furnace into operation by the end of this year while a second furnace is set to be operated in the second quarter of 2017. Therefore, the group is unlikely to scale up its investment to $26 billion before the project proves effective, the Ministry of Planning and Investment-run newspaper added.