Formosa Ha Tinh Steel
18°02′N 106°26′E / 18.04°N 106.43°E
| Industry | Steel |
|---|---|
| Founded | 2008 |
| Products | Hot rolled steel, rebar |
| Parent | Formosa Plastics Group |
| Website | www.fhs.com.tw |
Formosa Ha Tinh Steel Corporation (Chinese: 台塑河靜鋼鐵公司, Vietnamese: Công ty TNHH Gang Thép Hưng Nghiệp Formosa Hà Tĩnh, abbr. FHTS) is a steel plant established in the Vung Ang Economic Zone, Vietnam by the Hung Nghiep Formosa Ha Tinh Steel Company under the backing of the Formosa Plastics Group.
Development of the plant began in the 2010s, with steel production beginning c. 2016.
History
Formosa Ha Tinh Steel Corporation was formed 2008 to establish a large iron and steelmaking plant at a deepwater port in Vietnam.[1] The primary investor and developer was Formosa Plastics Group of Taiwan.[2]
In 2010 3,300 hectares (33 km2) of land in Kỳ Anh District was allocated to the development company (Hung Nghiep Formosa Ha Tinh Steel Co) by Ha Tinh Province. Initially statements by the company estimated a $15 billion development cost to install 7.5 million tons pa steel capacity.[3] In 2012 the developer Hung Nghiep Formosa Ha Tinh Steel Co estimated an increased project of $22 billion.[3] Governmental incentives for the plant included low taxation in imported capital goods, low land taxes, and the development of infrastructure supporting the project.[4] Employment due to the project was expected to be c. 10,000 person; with a second phase increasing production to 22 MT pa, and creating c. 30,000 jobs.[5]
A groundbreaking ceremony for the plant took place in 2 Dec 2012 in the presence of Prime Minister Nguyen Tan Dung.[6] Associated developments included the Thạch Khê iron mine (reserves 544 MT), 60km north; GW scale thermal electric powerstations; and the Vuang Ang-Son Duong deep sea port, capable of berthing ship of up to 300 to 500 thousand tons.[7]
In 2014 Formosa Plastics reached an agreement to invest $1.15 billion to acquire approximately one third of Fortescue Metals Group's Iron Ore Bridge project in western Australia, together with a $123 million investment into a related port project.[8]
During anti-Chinese riots in May 2014 (see 2014 Vietnam anti-China protests.) the plant was attacked by rioters, with fires started; four Chinese workers were killed, with 3,000 forced to leave due to the riots.[9][10] As a result of the riots construction work was halted for ten weeks, resuming in July 2014.[11] In Mar 2015 a scaffolding collapse at the construction site caused the deaths of 16 workers.[12]
In early 2015 China Steel (Taiwan) increased its holding in the plant from 5% to 25%, investing c. $940 million into the development of the plant.[13] In mid 2015 JFE Steel (Japan) acquired a 5% stake ($215.2 million) in the plant.[14]
In late 2015 the plant outputted the first hot rolled coil manufactured in Vietnam.[15] "Phase 1" Blast furnace iron production was scheduled to begin in 2016, with two blast furnaces at the plant having a total production capacity of 7.5 MT pa; approximately 6 MT were for flat steel production, and 1.5 MT for rebar and other rolled steels.[16] Two further expansion phases, were planned to increase production to 15 MT and then 22.5 MT pa.[16]
In 2016 a mass fish poisoning in the sea near off the Vietnam coast was initially blamed on the steel plant - analysis of the sea water showed high phosphate and pH levels;[17] subsequently Vietnamese authorities stated no link had been shown between the plant and fish deaths.[18] The plant was later ordered to dig up and modify a waste pipe to allow easier monitoring by Vietnamese authorities.[19]
References
- ^ "公司沿革", www.fhs.com.tw (in Chinese), retrieved May 2016
{{citation}}: Check date values in:|accessdate=(help) - ^ "Formosa still committed to US$10bln steel plant", english.vietnamnet.vn, 30 July 2014
- ^ a b "Formosa Steel lifts investment to $22b in cast iron refinery", vietnamnews.vn, 24 Apr 2012
- ^ "Ministry opposes steel region plans", vietnamnews.vn, 28 June 2014
- ^ "Formosa Steel to boost investment", vietnamnews.vn, 22 June 2012
- ^ "PM hails efforts at major steel plant construction launch", vietnamnews.vn, 3 Dec 2012
- ^ "Economic zone grows into industrial centre", vietnamnews.vn, 22 July 2013
- ^ Regan, James (15 Aug 2013), "Formosa Plastics in $1 billion Australian iron ore deal: Fortescue", www.reuters.com
- ^ Hung, Faith (15 May 2014), Urquhart, Michael (ed.), "Formosa Plastics' steel plant in Vietnam attacked by mobs", www.reuters.com
- ^ Wu, Debbie (19 May 2014), "Formosa Plastics: 4 Chinese workers dead, 3,000 to leave Vietnam", asia.nikkei.com
- ^ Wu, Debbie (9 July 2014), "Report: Formosa Plastics to resume steel plant construction in Vietnam", asia.nikkei.com
- ^ "Scaffold collapse kills at least 14 at Taiwan's Formosa steel complex in central Vietnam", www.thanhniennews.com, 26 Mar 2015
- ^ Yamashita, Kazunari (18 Dec 2015), "China Steel to boost investment in Vietnamese mill", asia.nikkei.com
- ^ "Vietnam to become key production base", asia.nikkei.com, 17 Aug 2015
- ^ "Formosa Ha Tinh Steel produces Vietnam's first HRC", www.steelfirst.com, 31 Dec 2015
- ^ a b "Giant steel project in Ha Tinh to start operation soon", english.vietnamnet.vn, 23 Apr 2016
- ^ "First death in suspected Formosa Plastics toxic leak", asia.nikkei.com, 28 April 2016
- ^ Minh, Ho Binh; Nguyen, Mai (27 Apr 2016), "Vietnam says no proof Formosa steel plant linked to mass fish deaths", www.reuters.com
- ^ Minh, Ho Binh (29 Apr 2016), "Vietnam tells Taiwan firm to dig up waste pipe amid 'huge' coastal disaster", www.reuters.com
See also