Vietnam Ha Tinh Steel company abandoned plans for the construction of the rolling plant

Ha Tinh Steel (Vietnam) announced the closure of the project construction plant hire. Initially, the Vietnamese company had planned to build enterprise Van Loi Steel Mill in the Ha Tinh area. Investment Ha Tinh Steel in a new plant began in 2007. Now, the authorities of Ha Tinh has withdrawn the investment certificate.

The company was to do the Vietnamese Corporation to eighty million dollars. The plant’s capacity too, had become significant. In the first phase the plant was to produce two hundred and fifty thousand tons. In the second stage was scheduled to release half a million tons of rolled steel. Initially it was planned that the Van Loi Steel Mill will begin its work in 2010. But the plans failed to translate into reality. Although the plant has a high stage of readiness, but remains unfinished.

Some shops have already installed the machines and other equipment. But at this stage, Ha Tinh Steel suffered substantial financial losses. Today, the Vietnamese company was not able to cope with monetary difficulties. Now the total amount of debt to several different banks to thirty — three million dollars. And, it is unlikely the company be able ever to pay them.

Freezing of the project of Van Loi Steel Mill was a significant blow not only to the company Ha Tinh Steel. Unfinished construction has affected the state of metallurgy in the area of Ha Tinh. In addition to an unfinished enterprise, ceased to exist factory Vu Quang. This company started its operation in 2009. The power was limited to Pakistani thousands of tons annually. The main consumer products were supposed to be the plant of Van Loi Steel Mill. Specialization Vu Quang — production of rolled. But due to protracted construction project of Ha Tinh Steel plant, the factory could not find consumers. This was the cause of the plant shutdowns in 2012.

In 2011 ceased development of the field Thach Khe. The mine was closed in 2011. Originally the mine was supposed to give ten million tons of iron ore annually.

The Vietnam Association of steelmakers has appealed to the government to settle the industry. The Association is confident that the number of investment licenses exceeds the needs of the market. This is despite the fact that the country is one of the largest importers of steel in the world. Now, many of the projects are frozen.