Standard Chartered Vietnam announced Friday the signing of a transition trade finance facility sized at $25 million to support Tung Ho Steel Vietnam Corp.
The finance facility will support the steelmaker’s ongoing procurement of scrap steel as part of Tung Ho Steel’s scrap-based electric arc furnace (EAF) production.
Tung Ho Steel Vietnam is a subsidiary of Tung Ho Steel Enterprise Corporation, the largest EAF-based steel producer in Taiwan.
Producing new steel from steel scrap is one of the most environmentally friendly ways of production. Since its establishment in the country in 2016, Tung Ho Steel Vietnam has been producing steel using 95-100% of scrap, recycled steel as raw material and EAFs in its production facilities
Compared to traditional blast furnaces, using electric furnaces to refine the steel enables the steel scrap to be constantly reprocessed, therefore consuming less energy and reducing carbon emissions by an estimated 75%. It is estimated that EAFs emit a fourth of the carbon dioxide released by traditional blast furnaces.
Tung Ho Steel president Huang Bing Hua said, “In alignment with our group strategy, our operations in Vietnam focus on establishing and maintaining a high environmental standard in our production. This is ensured through the effective and sustainable use of energy, products, and governance.”
He added, “We look forward to working closely with Standard Chartered Vietnam as we seek to accelerate sustainable developments of our organization and in the industry.”
Standard Chartered (global) is committed to expanding the scale and reach of sustainable finance, with plans to mobilize $300 billion in green and transition finance by the end of this decade.