Ministry’s draft plan gives priority to coastal steel production

The Ministry of Industry and Trade yesterday put out for consultation a draft plan on steel production by 2020 and visions till 2035, which gives priority to coastal areas.

A steelmaking plant in Vietnam (Photo: SGGP)

According to the plan, steel production in coastal areas will be a priority because it will not affect the environment and there is much empty land to build steel mills in these areas.

In addition, the draft plan gives priority to the production of high quality steel billets over small scales suitable with iron ore source scattering in mountainous areas.

According to the ministry, raw material demand for making steel products is expected to reach 285 kilograms a person in 2020 and the country’s total consumption demand at that time will be able to hit 27 million tons.

Therefore, the ministry has set a target to increase the output of steel products made from domestically produced liquid iron and sponge iron to 21 million tons by 2020 and 46 million tons by 2025. The output of cast iron and sponge iron will reach 55 million tons by 2035.

Steel billet output will hit 32.3 million tons by 2020, 57.3 million tons by 2025 and 66.3 million tons by 2035.

The country will strive to raise the ratio of billets made from cast iron with blast furnace technology to 60 percent in 2020, 80 percent and 83 percent in 2025 and 2035. Self-contained steelmaking complexes using local and import iron ore will be developed to produce cast iron, sponge iron and steel billet.

The output of square and flat billets will be balanced to make domestic steel products with modern, energy saving and environmental friendly technologies.

Capital will be raised from economic sectors by establishing domestic joint stock companies who will list on local and foreign stock markets. Foreign invested firms and joint ventures will be set up for suitable scale projects.

Investors with good financial ability, environmentally friendly technologies and experience will be selected to produce hot rolled steel sheets, high quality steel products and large steel shapes for the manufacturing industry.

Technical barriers, quality standards and other  safeguard measures will be applied in accordance with international commercial regulations to ensure the consumption source for the steel market.

By Van Phuc – Translated by Hai Mien

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