Tuesday, August 14, 2007

Vietnam's shipbuilding giant to build a US$7.5 billion iron casting facility.

Vietnam’s shipbuilding giant plans $7.5 bln iron mill

Vietnamese state-run shipbuilder Vinashin has entered a deal with the central Ninh Thuan province to build a US$7.5 billion iron casting facility.

Once raised, the behemoth would churn out 8.5 million tons of iron annually in Ninh Phuoc district.

In the first stage, between 2008-10, Vinashin (Vietnam National Shipbuilding Corporation) will develop the project at an estimated cost of $1.7 billion.

The remaining capital will be injected into expansion of the mill over the next 8 years.

The capital arrangement has gone undisclosed so far.

The mill is scheduled to open early next year.

Established in 1996, Vinashin has branched out into seaport construction and the steel industry aside from its core shipbuilding business.

The group aims to achieve revenues of $1 billion this year, up from $690 million in 2005.

It has ongoing shipbuilding contracts worth up to $12.3 billion, with orders from foreign companies accounting for $10 billion.

Vinashin is assigned by the government to build a national shipping fleet to meet domestic transport and 30 percent of the export transport demand for crude oil.

Between now and 2010, the unlisted-shipbuilder plans to build seven shipyards, six shipbuilding industrial parks and seven shipbuilding industrial complexes throughout Vietnam.

Additionally, it will invest in upgrading 10 major shipyards capable of building 3,000-10,000 ton ships.

For the long term, Vinashin is planning to set up a financial leasing arm and shipbuilding investment fund to woo domestic and international capital sources.

The shipbuilder has also set its sights on turning Vietnam into the world’s 11th largest shipbuilder, four spots up from its current position, in the near future.

The corporation has developed its maritime carrier markets in Europe, America, the Republic of Korea and Japan.

Source: Tuoi Tre, Thanh Nien – Compiled by Dong Ha