STF hots-up interest in Dung Quat

By Vietnam Investment Review, December 9th, 2013

Italy’s power equipment producer STF Group is considering plans to build a manufacturing plant in the Dung Quat Economic Zone to address Vietnam’s growing demand for thermal power equipment.

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An official at the Dung Quat Economic Zone Management Authority, in the central province of Quang Ngai said an STF Group delegation had visited the zone late last month while searching for an investment location.

The official also told VIR that STF wanted to build a factory in Southeast Asia to supply equipment for thermal power plants in the region, adding that the company had also audited the quality of the local workforce and transportation infrastructure in the province.

“STF has not yet given a final decision, but its representatives highly valued the investment climate as a place where the firm could take its first steps into the Southeast Asian region,” he said.

Established in 1937, STF focuses on manufacturing engineering equipment, especially for the power sector. STF produces advanced heat recovery steam generators for combined cycle power plants, fossil fired utility boilers, air pre-heaters and biomass fired boilers.

The official said STF’s plan was an ideal example of the kind of investment the Dung Quat Economic Zone was looking to attract to boost industrial development in the province.

Located in the central region, the Dung Quat Economic Zone is emerging as one of the most attractive destinations for industrial investment in Vietnam. The zone has attracted more than 100 investment projects, with a total committed capital of around $8 billion.

If the STF plan goes ahead, it would become Vietnam’s second thermal power plant equipment manufacturing facility.

South Korea’s Doosan Heavy Industries already has a 110 hectare high-tech industrial complex in the Dung Quat Economic Zone, employing over 2,200 local workers.

This manufacturer produces boilers for thermal power plants, heat recovery steam generators, desalination equipment, material handling systems and chemical processing equipment.

Doosan won the contract for the Mong Duong 2 thermal power plant in the northern province of Quang Ninh, developed by a joint venture between the US’ AES Corporation, Posco Power and China Investment Corporation.

International investors are eyeing Vietnam’s thermal power sector as the country struggles to meet the growing energy demand. The Vietnamese government also recently mapped out a plan to encourage domestic and foreign firms to produce equipment for the sector in the country in order to reduce its reliance on imports.

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