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FPG's steel plant in Vietnam to go online at end of 2014.

Taipei, Nov. 1, 2012 (CENS) -- With land reclamation for the construction of its steel plant in Vietnam going smoothly, Formosa Plastics Group will kick off first-stage construction in February 2013, aiming to activate the plant at the end of 2014, according to the group.

A steel-casting foundry and steel mill are the main part of the first-stage construction, with the plant to cost about US$8 billion, 95% of which to be financed by the group's affiliates, and to turn out 7.5 million tonnes of steel a year once fully operational.

The steel plant will produce 15 million tonnes after the second-stage construction is finished, with total construction cost estimated at NT$400 billion.

The steel plant is part of the group's plan to diversify business overseas for sustainable development. The directors confirmed that, with land reclamation almost complete, the first-stage construction is scheduled to start in February 2013, with partial activation by the end of 2014, and hopefully will generate additional revenue of over NT$130 billion for the group a year, making FPG a global conglomerate in plastic, petrochemical and steel.

Driven by the steel plant, institutional investors predict annual revenue by the group's four major affiliates, namely Formosa Plastics Corp, Nan Ya Plastics Corp., Formosa Chemical & Fibre Corp. and Formosa Petrochemical Corp., will surge to NT$1.66 trillion after the first-stage construction is finished, and up to NT$1.8 trillion when the complex is fully operational. The four affiliates finished 2011 with total revenue of NT$1.46 trillion.
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Title Annotation:Formosa Plastics Group
Author:Chuang, Steve
Publication:The Taiwan Economic News
Article Type:Brief article
Geographic Code:9VIET
Date:Nov 1, 2012
Words:255
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