E United Group to Launch Vietnam Integrated Steel Project in March

Taiwanese major steel group, E United Group starts construction of 7 million tonnes blast furnace based integrated steel project in middle of Vietnam in March. The chairman Lin I-shou said to a reporter of Japan Metal Bulletin in Kaohsiung the offshore first blast furnace building project by Taiwanese company. The firm completes the first phase with 3.5 million tonnes of blast furnace in first half of 2013. The firm will make hot rolled flat steel to supply to cold rolling subsidiaries in Taiwan and China along with buyers in Southeast Asia through the total US$ 4.5 billion project.

The group has Taiwanese largest stainless maker, Yieh United Steel (YUSCO) and Southeast galvanizing steel major, Yieh Phui Enterprise. Yieh Phui, which purchases hot rolled coil from China Steel of Taiwan and offshore makers, tries to stabilize the sourcing through the project. However, the project was delayed due to financial crisis.

The firm builds the integrated steel plant with Chinese facilities in Guang Ngai, middle part of Vietnam. The firm will build second blast furnace in a couple of years after the start of the first blast furnace. The firm purchases raw materials from major suppliers in Australia and Brazil.

Mr. Lin said the firm can secure the investment fund from own resources and borrowing and has no participation by other steel makers and investment funds. He said the firm is open for potential technology tie-up if other maker would approach to the company.

Yieh Phui has annual 1 million tonnes of production capacity in Taiwan and 900,000 tonnes of capacity in near Shanghai, China for cold rolling and galvanizing steel. The firm operates the facilities at full capacity since late 2009 and plants to increase the production in 2010 from 2009.