According to information obtained by reporters, the proposed solution is to terminate the EPC contract with the contractor, the China Metallurgical Science, Technology, and Trade Corporation (MCC). The Vietnamese side will complete the remaining unfinished portions of the project.
Accordingly, the Vietnam Steel Corporation will work with the partner to agree on a contract termination plan, clarify any outstanding issues, and identify project components that the contractor has not completed.
 TISCO 2 project equipment is seen rusting after years of abandonment. Photo: Nguyen Bang |
“The control center of the TISCO 2 project, once considered modern and the heart of the plant, will be replaced entirely as it is now outdated compared to current steel manufacturing technology.”
Since March 2024, the two sides have jointly conducted an inventory of thousands of equipment and materials being stored, with the witness and participation of an independent consultant. Many pieces of equipment will need to be replaced due to their outdated technology after the contract termination.”
Previously, to prepare for the comprehensive inventory of equipment for the project, which has been sealed for many years, TISCO invited VinaControl consultants to work with the MCC contractor to agree on a trial inventory of the blast furnace blower equipment.
Regarding the revival potential of the Thai Nguyen Iron and Steel Project Phase 2, a steel industry expert shared with Tien Phong that with the current capabilities of Vietnamese engineers, the project owner can certainly complete and operate the project without the involvement of the Chinese contractor, given approval to proceed.
According to this expert, the project can definitely be revived with debt restructuring and supportive policies and mechanisms.
“Similar to the projects of the Vietnam Chemical Corporation, early project completion and efficient operation, combined with the recent favorable upward trend in steel prices, can lead to effective project operations and gradually reduce losses.”
According to Tien Phong reporters, in May 2021, the Thai Nguyen Iron and Steel Joint Stock Company (TISCO) also sent a document to the relevant authorities proposing to resume the stalled Phase 2 expansion with a commitment to make the project effective after a few years.
According to TISCO’s leadership proposal at that time, to restore Phase 2 of the project, the company could take charge and hire people to operate the coke plant first.
The amount of coke produced by the coke plant in phase two would be sufficient to supply the company’s three current rolling mills. This plan would help the phase-two plant reduce costs by about VND 300 billion per year.
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