Monday, March 22, 2010

Formosa Plastics Secures Vietnam Iron Ore Supplies

Taiwan’s Formosa Plastics Group, has said that it has secured iron ore supplies for its planned Vietnamese steel mill.

An un-named official from the company says it has signed a letter of intent for an annual supply of 12 million metric tonnes from BHP Billiton, Rio Tinto and Vale.

The supply is scheduled to start from 2013, when the Vietnamese steel complex begins operations.

The group will invest 280 billion Taiwan dollars (nine billion US dollars) in a steel complex with an initial annual capacity of 7.5 million tonnes in central Vietnam’s Ha Tinh province.

Construction is planned to begin soon after Vietnamese authorities transfer the land needed for the steel plant, which they have committed to do by the end of April.

Formosa Plastics Group has interests in petrochemicals, semiconductors and biochemicals.

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