The project, which is part of the government’s master plan for the steel industry from 2010-2015, will cover more than 400,000m2 in the Hoang Mai Industrial Zone, Quynh Luu, Nghe An province in central Vietnam.

In the first phase, the plant is expected to be put into operation in 2012 with an annual capacity of one million tonnes, making up half the domestic share. In the second phase, the plant’s capacity will be raised to two million tonnes per year. In this period, KINV will seek to install a steel producing plant to create finished steel products from sponge iron.

KINV says sponge iron can replace cast iron in the process of refining steel, ensuring the high quality of steel.

KINV’s plant will mainly exploit iron ore from Thach Khe iron mine in Ha Tinh and coal from Quang Ninh.

Noteworthy is the application of the environmentally-friendly ITmk3 technology, which does not discharge fumes.

KINV, part of Japan’s giant Kobe steel group, says it will recruit and train about 90 local workers.