Formosa Ha Tinh Steel Corp (台塑河靜鋼鐵興業) is to study the feasibility of building a third furnace to expand production, the Ha Tinh, Vietnam-based firm said on Monday.
Demand for steel from the Southeast Asian market has been strong, prompting the company to mull the possibility of expansion, chairman Chen Yuan-cheng (陳源成) told reporters.
However, whether it follows through on the idea depends on its shareholders and on whether the Vietnamese government would support the plan, Chen added.
Formosa Ha Tinh Steel’s second furnace, located in the Vung Ang Economic Zone of Ha Tinh Province, started operations on May 18, while the first furnace became operational on May 29 last year.
Chen said that the first furnace rolled out about 1.6 million tonnes of molten iron last year, while the second furnace, which is operating at 95 percent, is expected to produce 5 million tonnes this year, generating US$2.5 billion in sales.
Production from the second furnace this year is expected to boost economic growth in Vietnam by 1.27 percentage points, up from 0.45 percentage points last year, according to an estimate by Formosa Plastics Group (FPG, 台塑集團).
The group, which is the largest shareholder in the Ha Tinh Steel venture, owns a 70 percent stake, while China Steel Corp (中鋼) holds a 25 percent stake and Japan’s JFE Steel Corp 5 percent.
The shareholders have invested more than US$10 billion in the steel mill, making it the largest foreign investment in Vietnam.
A feasibility plan would be conducted on the third furnace by next year at the earliest, given US-China trade tensions, and other factors, Chen said.
STEEP DECLINE: Yesterday’s drop was the third-steepest in its history, the steepest being Monday’s drop in the wake of the tariff announcement on Wednesday last week Taiwanese stocks continued their heavy sell-off yesterday, as concerns over US tariffs and unwinding of leveraged bets weighed on the market. The benchmark TAIEX plunged 1,068.19 points, or 5.79 percent, to 17,391.76, notching the biggest drop among Asian peers as it hit a 15-month low. The decline came even after the government on late Tuesday authorized the NT$500 billion (US$15.2 billion) National Stabilization Fund (國安基金) to step in to buoy the market amid investors’ worries over tariffs imposed by US President Donald Trump. Yesterday’s decline was the third-steepest in its history, trailing only the declines of 2,065.87 points on Monday and
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
TARIFF CONCERNS: The chipmaker cited global uncertainty from US tariffs and a weakening economic outlook, but said its Singapore expansion remains on track Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now
RSS