Today: 08-03-2006
Industries
Steel plant to be built with Indian investor http://www.vneconomy.com.vn/eng/?param=article&catid=06&id=453fa01004aede
VNECONOMY updated: 08/03/2006
The Viet Nam Steel Corporation will hold talks with India's Essar Steel within this month on a project to build a 300 million USD hot-rolled steel plant in the southern province of Ba Ria-Vung Tau.
Essar Steel is a leading arm of Essar Group, one of India's largest conglomerates with assets of around 4 billion USD and interests spanning the manufacturing and service sectors, including steel, shipping, energy, telecommunications and construction.
The factory would be built over a two-year period, with a projected annual output of 2 million tonnes of steel. The new plant would help Viet Nam ease its dependence on steel imports, which topped nearly 3.6 million tonnes last year.
According to the Viet Nam Steel Association, the country currently has only one flat steel producer, the Phu My cold-rolled steel plant which has a tiny production capacity of 200,000 tonnes per year.
The Indian partner would be expected to contribute the majority stake in the venture, over 80 percent, said one steel industry observer, as the Viet Nam Steel Corporation is currently spreading its funds over a number of other projects.
The State-owned enterprise is currently finalizing the 135 million USD Phu My steel ingot and rolled steel factory in Ba Ria Vung Tau. It is expected to be operational within the second quarter of this year.
The corporation was also pouring 50 million USD into an ingot steel project in northern Thai Nguyen province and waiting for Government approval for a 175 million USD iron ore and ingot production project in the northern province of Lao Cai in which it would hold a 45 percent stake.
The Government last September also agreed in principle to allow Taiwan's Samoa Qian Ding Group to invest 650 million USD in a stainless steel production facility, also based in Ba Ria Vung Tau.
Thailand's Tycoons Worldwide Group earlier last year also said it was considering investing 1 billion USD in a steel refining and rolling plant in the central province of Quang Ngai.
Source: Vietnam Agency
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