BS reported that TATA Steel’s USD 5 billion project in Vietnam has lost the land it was promised to a larger project of a Taiwanese company, making it vulnerable to further delays.
The Vietnamese government has promised another land lot near the earlier location, but the allocation is yet to be done. The company expects the new land will be allotted in a few weeks.
Sources said that the 4.5 million tonne project announced two years earlier after signing an agreement with Vietnamese partners has already been delayed on land allocation issues. TATA Steel recently said that commissioning of the first phase would be complete in 2011.
According to the approved plans, the complex is to be developed in the Vung Ang Economic Zone. TATA Steel requires 1,100 hectares of land for its USD 5 billion project. However, the zone management wrote a letter to the TATA Group saying it could provide only 725 hectares of land. This will reduce the service area of the complex to 37 hectares from the required 50 hectares.
The Vietnamese media reported that project of Formosa the Taiwanese company is larger in scale than that of TATA Steel. Their 15 million tonne plant would require an investment of USD 7.9 billion and the steel complex is planned to cover an area of 3,035 hectares.
A TATA Steel spokesperson confirmed the change in plant location. He said a new location has been identified and the allocation would be completed in a few weeks.
(Sourced from http://www.steelguru.com/news/index/2009/09/04/MTEwMDk1/TATA_Steel_Vietnam_project_low_on_priority.html
Thursday, September 3, 2009
TATA Steel Vietnam project low on priority
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