Taipei, July 15, 2008 (CENS)--Formosa Plastics Group (FPG), Taiwan`s largest petrochemical conglomerate, recently broke ground to build a large steel mill in Ha Tinh Province of Vietnam, for which the FPG has budgeted US$8 billion.

FPG consultant Y.T. Kuo, former chairman of China Steel Corp. and Taiwan`s largest integrated producer of steel products, said the steel mill would be developed in three stages. Once online after being fully developed, the steel mill will roll out 30 million metric tons of steel products with annual sales reaching US$45 billion, bringing in US$360 billion in annual production value for Vietnam`s iron and steel industry.

FPG Administration Center president & CEO Wang Wen-yuan said FPG will set up a deep-water harbor in Son Duong of Ha Tinh province to handle 300,000-metric-ton ships, in addition to an integrated steel mill.

FPG will in the first stage invest US$8 billion to set up the deep-water harbor in Son Duong, and then employ the world`s most advanced refining and rolling technologies and production equipment for iron and steel.

Upon the start of the construction of the steel mill, the Vietnam government has also invited the FPG to invest in oil refining and petrochemical production. Wang Wen-chao, chairman of the FPG`s Formosa Petrochemical Corp., said his company would consider such investment if the Vietnam government will totally liberalize its oil industry policies.

FPG worries the most about recruiting construction workers to build the steel mill, which, Wang Wen-yuan said, will need between 40,000 and 50,000 workers. With the population in Ha Tinh province being limited, the FPG will consider hiring foreign workers from mainland China, Lao and Cambodia.
(by Ben Shen)