Posco to Start US$1.13Bln Steel Project in Aug

Posco, the world’s third largest steel maker from South Korea, will kick off its US$1.128 billion steel project, the biggest in Vietnam, in August this year in southern coastal Ba Ria-Vung Tau province, said Vietnam Steel Association (VSA).

 

The project, licensed late last year by the Vietnamese government, will also be the largest in Southeast Asia.

 

The two-phase project, set to cover 130ha of land in Phu My II Industrial Park, will be valid for 48 years.

 

Posco will pour $361 million into establishing a cold-rolled steel factory with production capacity of 700,000 tons a year by 2009, and by 2012 will invest $767 million to build a hot-rolled steel mill producing 3 million tons annually, while raising the cold-rolled plant’s capacity to 1.5 million tons.

 

When completed, the project is expected to meet one third to one half of Vietnam’s cold-rolled steel demand, while creating some 10,000 jobs by 2012.

 

This is the fifth flat rolled steel project and the third foreign-invested steel project in Vietnam. (Vietnam & World Economy)