18°02′N 106°26′E / 18.04°N 106.43°E / 18.04; 106.43 (Formosa Ha Tinh Steel)

Hung Nghiep Formosa Ha Tinh Steel Company
IndustrySteel
Founded2008
ProductsHot rolled steel, rebar
ParentFormosa Plastics Group
Websitewww.fhs.com.tw
Formosa Vung Ang, 2016
Drilling for engineering survey in Formosa Vung Ang, 2010

Formosa Ha Tinh Steel Corporation (Chinese: 台塑河靜鋼鐵興業責任有限公司, Vietnamese: Công ty TNHH Gang Thép Hưng Nghiệp Formosa Hà Tĩnh, abbr. FHTS) is a steel plant established in the Vung Ang Economic Zone, Vietnam by the Hung Nghiep Formosa Ha Tinh Steel Company under the backing of the Taiwanese conglomerate Formosa Plastics Group.

Development of the plant began in the 2010s. Steel production started in May 2017.

History

Formosa Ha Tinh Steel Corporation was formed in 2008 to establish a large iron and steelmaking plant at a deepwater port in Vietnam.[1] The primary investor and developer was Formosa Plastics Group of Taiwan.[2]

In 2010, 3,300 hectares (33 km2) of land in Kỳ Anh District was allocated to the development company (Hung Nghiep Formosa Ha Tinh Steel Co) by Ha Tinh Province. Initially statements by the company estimated a $15 billion development cost to install 7.5 million tons pa steel capacity.[3] In 2012 the developer Hung Nghiep Formosa Ha Tinh Steel Co estimated an increased project of $22 billion.[3] Governmental incentives for the plant included low taxation in imported capital goods, low land taxes, and the development of infrastructure supporting the project.[4] Employment due to the project was expected to be c. 10,000 person; with a second phase increasing production to 22 MT pa, and creating c. 30,000 jobs.[5]

A groundbreaking ceremony for the plant took place on 2 December 2012 in the presence of Prime Minister Nguyen Tan Dung.[6] Associated developments included the Thạch Khê iron mine (reserves 544 MT), 60 km north; GW scale thermal electric powerstations; and the Vuang Ang-Son Duong deep sea port, capable of berthing ship of up to 300 to 500 thousand tons.[7]

In 2014, Formosa Plastics reached an agreement to invest $1.15 billion to acquire approximately one third of Fortescue Metals Group's Iron Ore Bridge project in western Australia, together with a $123 million investment into a related port project.[8]

In early 2015, China Steel (Taiwan) increased its holding in the plant from 5% to 25%, investing c. $940 million into the development of the plant.[9] In mid 2015 JFE Steel (Japan) acquired a 5% stake ($215.2 million) in the plant.[10]

In late 2015, the plant outputted the first hot rolled coil manufactured in Vietnam.[11] "Phase 1" Blast furnace iron production was scheduled to begin in 2016, with two blast furnaces at the plant having a total production capacity of 7.5 MT pa; approximately 6 MT were for flat steel production, and 1.5 MT for rebar and other rolled steels.[12] Two further expansion phases, were planned to increase production to 15 MT and then 22.5 MT pa.[12]

The first blast furnace began production in May 2017.[13]

In 2017, the company announced an additional ~$350 million investment into the plant, part of which was for the installation of a coke dry quenching system.[14] Equipment for the dry coke quenching was to be supplied by Nippon Steel & Sumikin Engineering Co. Ltd. (NSENGI)[15]

Formosa Ha Tinh Steel's second blast furnace started operations in May 2018, a feasibility plan for the third blast furnace is expected for 2020 .[16]

2016 mass fish deaths

In April 2016 a mass fish poisoning in the sea near off the Vietnam coast was initially blamed on the steel plant - analysis of the sea water showed high phosphate and pH levels;[17] subsequently Vietnamese authorities stated no link had been shown between the plant and fish deaths.[18] The plant was later ordered to dig up and modify a waste pipe to allow easier monitoring by Vietnamese authorities.[19]

In May 2016 the company was found to have systematically evaded taxes and claimed excess tax refunds through stating the wrong tax codes for imported equipment - VND1.55 trillion (US$69.2 million) in tax refunds and VND5.5 billion ($245.54 million) in taxes were required to be paid to the government.[20]

In late June 2016 a government report found Ha Tinh steel responsible for the 2016 fish poisoning incident. Formosa Ha Tinh Steel agreed to pay $500 million (11.5 trillion VND) compensation for the discharge, which contained phenol, cyanides and iron hydroxides. The company blamed the discharge on errors by subcontractors during a trial operation phase.[21][22] A governmental report found the origin of the pollution to be from water from wet coke quenching, which was released into the sea after a power supply failure at the plant's waste treatment facilities.[23]

According to experts monitoring human trafficking the environmental disaster at Ha Tinh led to increased trafficking of young Vietnamese to Europe, due to the loss of livelihood to local fishermen from the event;[24] victims of the 2019 Essex lorry deaths included people from Ha Tinh province.[24][25]

Other incidents

  • In ~2013 Chinese workers at the complex, some of who lacked proper work visas, were reported as causing some security and order issues in the local area. An affray between Vietnamese locals and Chinese workers was reported at Lien Phu village in Aug 2013.[26]
  • During anti-Chinese riots in May 2014 (see 2014 Vietnam anti-China protests.) the plant was attacked by rioters, with fires started; four Chinese workers were killed, with 3,000 forced to leave due to the riots.[27][28] As a result of the riots construction work was halted for ten weeks, resuming in July 2014.[29]
  • In March 2015 a scaffolding collapse at the construction site caused the deaths of 16 workers, and injuring or trapping over 100.[30]
  • On 30 May 2017, a day after test operations were resumed since the marine life disaster in 2016, a lime kiln at the steel plant exploded. No casualties were reported.[31] The explosion was caused by a blocked Lime kiln dust filter.[32]
  • On 26 August 2021 at 15:00, 3 workers died from a carbon dioxide gas leak in the plant.[33]

See also

References

  1. "公司沿革", www.fhs.com.tw (in Chinese), retrieved 1 May 2016
  2. "Formosa still committed to US$10bln steel plant", english.vietnamnet.vn, 30 July 2014
  3. 1 2 "Formosa Steel lifts investment to $22b in cast iron refinery", vietnamnews.vn, 24 April 2012
  4. "Ministry opposes steel region plans", vietnamnews.vn, 28 June 2014
  5. "Formosa Steel to boost investment", vietnamnews.vn, 22 June 2012
  6. "PM hails efforts at major steel plant construction launch", vietnamnews.vn, 3 December 2012
  7. "Economic zone grows into industrial centre", vietnamnews.vn, 22 July 2013
  8. Regan, James (15 August 2013), "Formosa Plastics in $1 billion Australian iron ore deal: Fortescue", www.reuters.com
  9. Yamashita, Kazunari (18 December 2015), "China Steel to boost investment in Vietnamese mill", asia.nikkei.com
  10. "Vietnam to become key production base", asia.nikkei.com, 17 August 2015
  11. "Formosa Ha Tinh Steel produces Vietnam's first HRC", www.steelfirst.com, 31 December 2015
  12. 1 2 "Giant steel project in Ha Tinh to start operation soon", english.vietnamnet.vn, 23 April 2016
  13. Tomiyama, Atsushu (31 May 2017), "Formosa Plastics finally fires up Vietnamese steel mill", nikkei.com
  14. Pham, Ma; Hung, Faith (17 Mar 2017), "Taiwan's Formosa to invest about $350 mln more in Vietnam steel plant -exec", www.nasdaq.com
  15. "New Order - Cokes Dry Quenching 2 sets from FORMOSA HA-TINH STEEL CORPORATION" (PDF), nipponsteel.com (press release), 26 Oct 2017
  16. "FPG's Vietnamese steel unit mulling a third furnace", www.taipeitimes.com, 14 Nov 2018
  17. "First death in suspected Formosa Plastics toxic leak", asia.nikkei.com, 28 April 2016
  18. Minh, Ho Binh; Nguyen, Mai (27 April 2016), "Vietnam says no proof Formosa steel plant linked to mass fish deaths", www.reuters.com
  19. Minh, Ho Binh (29 April 2016), "Vietnam tells Taiwan firm to dig up waste pipe amid 'huge' coastal disaster", www.reuters.com
  20. "Vietnamese steel unit of Taiwan's Formosa under scrutiny over systematic tax violations", tuoitrenews.vn, 26 May 2016
  21. "Formosa unit owns up to fish kill disaster, commits to $500 million compensation", www.thanhniennews.com, 30 June 2016
  22. Nguyen, Mai (30 June 2016), "Formosa unit offers $500 million for causing toxic disaster in Vietnam", www.reuters.com
  23. Yu, Jess Macy; Hung, Faith (14 November 2016), Broken rules at $11 bln Formosa mill triggered Vietnam spill, report says, Reuters
  24. 1 2 "Trafficked Vietnamese and the lure of UK nail bars and cannabis farms", www.theguardian.com, 25 Oct 2019
  25. "Rural Vietnamese mourn loved ones feared dead in back of British truck", reuters.com, 26 Oct 2019
  26. Ra ngõ gặp… người Trung Quốc! - Kinh doanh - Dân trí, 16 Mar 2013, archived from the original on 19 March 2014
  27. Hung, Faith (15 May 2014), Urquhart, Michael (ed.), "Formosa Plastics' steel plant in Vietnam attacked by mobs", www.reuters.com
  28. Wu, Debbie (19 May 2014), "Formosa Plastics: 4 Chinese workers dead, 3,000 to leave Vietnam", asia.nikkei.com
  29. Wu, Debbie (9 July 2014), "Report: Formosa Plastics to resume steel plant construction in Vietnam", asia.nikkei.com
  30. "Scaffold collapse kills at least 14 at Taiwan's Formosa steel complex in central Vietnam", www.thanhniennews.com, 26 March 2015
  31. "Formosa Plastics Group's Vietnam steel plant hit by dust explosion", www.thanhniennews.com, 31 May 2015
  32. "Equipment Malfunction Causes Dust Explosion at Steel Plant", www.powderbulksolids.com, 31 May 2017
  33. "27 August 2021". VnExpress International.
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