A view of Guang Lian Steel Company's office in the Dung Quat Economic Zone. (Photo: Tri Tin/VnExpress)
The Dung Quat Economic Zone Authority has decided to stop the multi-billion-USD Guang Lian steel project invested by Taiwanese conglomerate E-United Group after a decade-long delay, according to the Saigon Times Online newspaper.
The decision was made last month, citing the investor’s violations of local laws on investment and land, a source was quoted as saying.
After conducting an inspection into the steel mill project, the Quang Ngai
government in June hinted that the project would have its license recalled as hundreds of hectares of land have been wastefully earmarked for it.
The license for Guang Lian Steel Vietnam Company, the operator of the project, will be withdrawn after the local authority takes legal steps, including the liquidation of the firm’s assets, the source added.
The project has undergone ups and downs, with a number of changes in partners and investment scale.
It initially had a designed capacity of five million tons per year and an investment of $1 billion. E-United in 2011 asked for permission to lift the investment capital to $4.5 billion and the annual capacity to seven million tons per year.
The project come to a standstill since mid-2014 and Guang Lian Steel Company in July 2015 informed to the provincial government that it could not arrange more finance to continue the project following Japan-based JFE Group’s refusal to partner with in September 2014.