Tata Steel to set up USD 5-bn plant in Vietnam

Steel major Tata steel today signed a joint venture agreement with Vietnam Steel Corporation, Vietnam’s largest steel company, and Vietnam Cement Industries Corporation to set up a steel plant in Vietnam, it said in a statement.

The integrated steel plant, with an annual capacity of 4.5 million tonnes, will be built in three phases at an estimated cost of USD 5 billion. The first phase of the plant envisages setting up a cold rolling mill, to be commissioned by 2010-end.

Tata Steel will hold 65 per cent stake, with Vietnam Steel holding 30 per cent and Vietnam Cement owning 5 per cent. The memorandum of understanding was signed on May 29, 2007. The definitive agreements were signed today after completion of detailed feasibility studies.

“We are excited to be a part of this landmark project that is slated to bring sustainable and long-term value to our companies and customers, and accelerate the development of Vietnam,” Tata Steel managing director B Muthuraman said in a statement.

Added Vietnam Steel president Dau Van Hung, “In Tata Steel, we have a strong partner to help us exploit the opportunities within our country, and make the most of our market potential.”

According to Vietnam Cement general director Nguyen Ngoc Anh, Vietnam is a ‘very attractive market’ with a growing population and demand for steel products. “This joint venture will be a strong platform to pursue growth opportunities,” Anh said.

Source:http://www.headlinesindia.com/business-news/iron-and-steel/tata-steel-to-set-up-usd-5bn-plant-in-vietnam-336.html

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