Indian, Vietnamese Firms Clinch Deal to Set up US$527Mln Steel JV
India’s Essar Group and two Vietnamese companies will today, February 12, sign a contract to establish a joint venture worth $527 million to produce hot rolled coil steel in the southern coastal province of Ba Ria-Vung Tau, Dau Tu (Investment) reports.
The Vietnamese firms are the country’s biggest steelmaker Vietnam Steel Corp (VSC), and Vietnam Rubber Corp (Geruco), Vietnam’s biggest rubber producer.
Of the total investment, Essar will contribute 65 per cent, VSC 20 per cent and Geruco 15 per cent.
The new mill is scheduled to roll out products in 2009 to be sold domestically. Materials for operation of the factory are set to be imported from India.
Vietnam’s steel industry is witnessing a surge of foreign direct investment (FDI) with the coming of global giants from Taiwan, South Korea and India as they see plenty of opportunity in the country.
This year, the country is forecast to need 4 million tons of steel in 2007, up 11 per cent on-year. (Investment)
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