Home News Industry dynamics Associated steel mills are in the project black list due to losses

Industry dynamics

Associated steel mills are in the project black list due to losses
  • 2017-03-13

This is Cong Shine one reliable stainless steel supply in China. Our products stainless steel coil/stainless steel sheet/stainless steel pipe are exported to Asia like Vietnam/The Philippines and so on. Now let us share Vietnam steel news with you.

 

"Vietnam network" web site reported  the mineral and metallurgical liability co., LTD., were huge losses afer several years on February 24.And it is against Vietnam. It is joint venture between Vietnam steel corporation and China steel group.The investments are the old street steel mills and Gui sand iron ore plant. The investment of project is total 6 trillion dong (including 5.4 trillion steel mills 0.4 trillion dong iron ore plant). After two years of operation, the cumulative loss is 1 trillion dong.Nowdays, it is shown on the  Vietnam losses 12 trillions dong project list issued by Vietnam trade and industry department . According to the report, the steel projects opened in December 2014 and the loss was 91 billion dong accordingly in the December.

In 2015 and 2016, the steel billet production cost was higher than market under the continues influence of China's steel market. So it was loss. Gui sand iron ore sales also failed to finish the project on time. The consequence was cumulative loss of 1.077 trillion dong. According to the feasibility study report, project operation was allowed loss of 550 billion dong during the first two years.But now Loss is more than loss plan 522 billion dong. In addition, the steel projects built in backward transport infrastructure and human resource level is not high in poor condition like the mountains. It increased transportation costs such as fuel/ equipment spare parts.So it also caused losses to the project.

With many years stainless steel industry experience,Cong Shine find the completed stainless steel process Chain is formed in China. It is our advantage. If you have any stainless steel question , pls feel free to ask us. We are your eyes  in China for best stainless steel production.

Source: China's ministry of commerce

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