LION GROUP ... Aug09

LION GROUP said that its planned USD9.8 bil (RM34.59 bil) steel plant venture in Vietnam is being reviewed in light of the global financial crisis. " .... We are considering various aspects of the project and its implementation in view of the global financial crisis that has occurred since the project was initially proposed ...." the Company said by email to BLOOMBERG NEWS on Jul 27, 2009. This will require discussions with the Vietnamese authorities, financial institutions and its suppliers, the Company said.

Talks on the proposed joint-venture plant in Ninh Thuan province with VIETNAM SHIPBUILDING INDUSTRY GROUP, or VINASHIN, will take some time?? to complete, the Company said.

" .... We heard about the review ...." and the Group is probably considering the value of investing in a country that already has many steel projects, NGUYEN TIEN NGHI, Vice-Chairman of the Vietnam Steel Association, said in a telephone interview from Hanoi on Jul 27, 2009.

SURPLUS VIETNAMESE STEEL CAPACITY
VIETNAM may face a surplus of steel because of the growing number of projects, he said. Steel producers in Vietnam expect construction steel capacity to reach about seven million tonnes in 2009, outpacing demand of 3.8m tonnes, he said. " .... We sent requests to the Prime Minister to ask the Government to review licensing steel projects in order to balance supply and demand ...." NGHI said.

The Vietnamese Government is targeting economic expansion of more than 5% in 2009, Prime Minister NGUYEN TAN DUNG said early Jul 2009, following 4.5% growth in the last quarter.