Formosa Plastics Group, Taiwan’s biggest diversified industrial company, plans to spend US$2.57 billion to set up a steelmaker in Vietnam and take a 95 percent stake in the venture.
A new company may start building the mill with annual capacity of 7.5 million metric tons by the end of the year, K. H. Wu, president of Formosa Heavy Industries Corp., said in an interview.
Wu’s company, a unit in Formosa Plastics Group, will own 5 percent of the mill, he added.
Formosa Plastics, based in Taipei, is expanding in Vietnam to cut costs and tap the Southeast Asian market.
The group set to spend $600 million in the country to boost output of textiles and other products, Chief Executive William Wong said last November.
“We’re looking at demand from the Association of Southeast Asian Nations,” Wu said Wednesday.
Production from the mill will probably start three years after construction begins, he said.
Source: Bloomberg
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