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The Sahaviriya Group's Sahaviriya Iron and Steel unit is eyeing China and Vietnam as alternative destinations for steel blast furnaces after strong community resistance and political uncertainty in Thailand delayed its planned project here.

"While we face opposition [locally], Chinese and Vietnamese governments have persuaded us to establish the steel blast furnace in their country. We are interested in their offers, as they will invest in the infrastructure and utilities for us. Therefore, our project may require lower investment," SIS president Win Viriyaprapaikit said yesterday.

Despite years of intense efforts to build the steel furnace in Prachuap Khiri Khan's Bang Saphan district, SIS still faces local resistance, which made it fail to receive government approval for the project's environmental impact assessment and also Board of Investment incentives.

It also encountered problems finding financing for the Bt500 billion plant with total annual capacity of 33 million tonnes before dividing the project into five phases.

The first phase requires Bt90 billion. Sino-International Heavy Industry Technology (Sino-HIT) has agreed to install Bt50 billion worth of machinery and technology and Sahaviriya will invest Bt40 billion to develop infrastructure, utilities and a deep-sea port.

Besides the hurdles of infrastructure development and environmental concerns here, political instability is also a weakness compared with these two countries, Win  said, adding that he still preferred to carry on this project in this country if all the obstacles could be overcome.