Home >> Daily News >> Vietnam >> Commodities >> Vietnam gives greenlight to China Steel, Sumitomo JV
Vietnam gives greenlight to China Steel, Sumitomo JV
China Steel Sumikin Vietnam Joint Stock Company, a joint venture (JV) of China Steel Corp (CSC) and Japan's Sumitomo Metal Industries (SMI), finally obtained the approval from the Vietnam government to start business operations in the country, China Knowledge reported on its website – www.chinaknowledge.com.
The establishment of the JV was delayed due to the factory site changes ordered by the local government.
According to a statement by the largest steel maker in Taiwan, the total investment of the new venture is estimated to be $1.15 billion. China Steel will take a 51 percent stake in the JV, while Sumitomo Metal holds a 30 percent stake.
It is estimated that CSVC's steel plant will be operational in 2012, and will be able to produce 1.6 million tons of cold rolled steel products per year.
The steel plant will sell its products mainly in the local market. Meanwhile its cold rolled products will be further shipped to clients in other Southeast Asian countries considering the growing demand in the region.
The two parties reached an agreement on setting up the JV in August 2008.
Separately, CSC is also reportedly to help Formosa Plastics Group (FPG), the world's second-largest producer of polyvinyl chloride by output, to build a steel plant in Vietnam.
FPG announced to set up a steel plant in Vietnam over two years ago, with an estimated investment of over $8 billion. The annual capacity of the plant is expected be 30 million tons.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below