Fuco Steel Corporation Ltd. has kicked of the construction of the second phase of its steel production plant, investing an additional $76.5 million in the southern province of Ba Ria-Vung Tau’s Phu My 2 industrial park, increasing Fuco’s total investment capital in the plant to $156.5 million.
The six-hectare plant will be equipped with a manufacturing line imported from Italy. The construction is expected to be completed in August 2017 so that the plant can come into operation one month later, with an output of 600,000 tonnes per year.
Almost all products of the expanded plant will go to large domestic customers, namely Vina Kyoei Steel, SSE Steel, Nha Be Steel, Tay Do Steel, and Vinh Phuc Mechanic. The remaining products will be exported to the Philippines, Thailand, Bangladesh, and Singapore.
Fuco currently runs the first phase, a 30-hectare steel billet plant to produce billets, which is used to make reinforcing bars, bars, and wires.
The construction of the first phase was started in 2012 and finished in 2014. The plant has an annual capacity of one million tonnes, 20 per cent of which is distributed on the domestic market, and the remaining 80 per cent being exported to the ASEAN and Middle Eastern markets.
Entering Vietnam in 2007, Fuco is a subsidiary of Fuco International Ltd.-the largest steel maker in Taiwan. The company in Vietnam currently has 250 trained employees and engineers.