According to Dinh Quoc Thai, Secretary General of the Vietnam Steel Association, the Xuan Thien green steel project in Vietnam aims to reach an annual production capacity of 9.5 million tons of low carbon emission finished steel. However, the project is moving slowly due to weak market conditions in Vietnam.
Currently, the project is focused on building a plant for prefabricated concrete structures, which is expected to be operational by 2024. Future plans include a 7.5 million tons per year plant in Xuan Thien Nam Dinh and a 2 million tons per year plant in Xuan Thien Nghia Hung.
The aim is to develop an electric arc furnace (EAF) smelter and downstream facilities using a combination of direct reduced iron (DRI) and scrap as raw materials.
Sources connected to the project reveal that negotiations are ongoing with multiple companies, indicating a serious commitment. However, the specific equipment for the new steel mill has yet to be selected.
The project is cautious about advancing its investment too quickly due to the weak Vietnamese steel market and difficulties in securing credit, a source said.
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