The Lao Cai iron and steel factory in the northern mountainous province of Lao Cai produced its first batch of cast iron on May 26.

According to Nguyen Van Toan, Director General of the Vietnam-China Mineral Resources and Metallurgy Company, the project’s investor, the factory can produce 12-13 batches of cast iron every day, with a total output of 1,500 tonnes.

Applying the latest technology, the factory is the second largest of its kind in Vietnam after the Thai Nguyen iron and steel factory.

In its first phase, the factory has a design capacity of 500,000 tonnes per year, which will be doubled in the second phase. It is expected to contribute about 700 billion VND (32.9 million USD) to the state budget every year.

The project uses Quy Xa mine as its main material source, which has a reserve of 120 million tonnes. The first batch of steel ingot is expected to be produced in June.

Construction of the Lao Cai iron and steel factory, which is partnered by Vietnam Steel Cooperation and Chinese Kungang steel and iron company, commenced in 2011 with a total investment of 337 million USD.-VNA