Posco-Vietnam Ltd: Commitment to Quality

The project is divided into two phases. In the first phase, Posco invests US$340 million to build a cold-rolled steel mill with annual output of 700,000 tonnes of cold-rolled products. The first phase is scheduled to finish in 2009. In the second phase, an additional US$660 million investment will expand output to 1.5 million tonnes a year. At the same time, Poscois constructing a hot-rolled steel plant with designed annual output of 3 million tonnes. In the second phase, this project will annually import some 3 million tonnes of ingots from its plant, now underway in India and set to finish construction in 2012. 

 

Cold-rolled steel in the Vietnam mills is used to manufacture different types of roofing and steel sheets in the automotive, shipbuilding, electronic, industrial and civil engineering industries, currently reliant on imports. This project will recruit 10,000 employees. Posco asked the Vietnamese Government to facilitate its projects by providing tax incentives, infrastructure construction funding (specialised ports, roads, railways for transporting materials and output products, and electricity, water and gas supply systems).

 

Posco is the largest steelmaker in South Korea and is the fourth largest in the world. Posco has been present in Vietnam since 1991 and has operated two steel projects in the country, namely Posvina Joint Venture Company VPS. Posco representatives announced the group will expand equipment for upstream production. The Vietnam project is very important as South East Asian demand for steel is soaring. Mr Han Dong Hee, CEO of Posco in Vietnam, said: “To Vietnam, we bring one commitment: High quality, and this will be seen when our products are available on the market.”
Ngoc Trang