The local government in Vietnam's Binh Dinh province has approved construction plans for a 5.4 million tons/year steel complex and a large port complex for flats and longs production.
The government support the country needed for its steel industry came as the factories stopped production due to high costs and weak demand.
The proposed Long Son Iron and Steel Complex, which will be built on an area of approximately 470 hectares in Hoai Nhon Town of Binh Dinh, will cost VND 53.5 trillion ($2.16 billion) with the investment divided into three phases, according to local media of the Saigon Times. The project was approved, but no specific date was given for the start of construction.
Officials announced that a previous plan to build another power plant was abandoned in October, due to the backlash of locals, who were concerned about deforestation to make way for the plant.
Leading steelmakers Hoa Sen Group and Hao Phat Group suffered financial losses in the July-September period mainly due to rising costs for coal, and the approval for the continuation of Long Son Iron and Steel Complex is dealing with a severe market downturn for the Vietnamese steel industry. It was given at a difficult time.
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