Vietnamese steel processor Hoa Sen Group said it will pull back from the $10bn investment in Ca Na steel project by Viet Dung in Ninh Thuan Province, according to media reports on Tuesday, July 28.
The company will sell two out of the six companies involved with the Ca Na Steel project. The two companies have a charter capital of $2.2mn each. Hoa Sen will dissolve the other remaining companies.
The Group said in a statement that the project did not fit the original vision proposed in 2016 that aimed at a production capacity of 16mn mt of steel a year.
In the national steel production plan for 2025 the Ministry of Industry and Trade included the Ca Na steel project with a vision until 2035.
In 2017, Hoa Sen’s Ca Na project was suspended by the country’s Prime Minister, Nguyen Xuan Phuc, as the Formosa Ha Tinh Steel polluted more than 200km of coastline. The devastation reportedly damaged the economies of four provinces.