By IANS,
New Delhi : Steel major Tata steel Wednesday signed a joint venture agreement with Vietnam Steel Corp, Vietnam’s largest steel company, and Vietnam Cement Industries Corp 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 $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 percent stake, with Vietnam Steel holding 30 percent and Vietnam Cement owning 5 percent.
The memorandum of understanding was signed May 29, 2007. The definitive agreements were signed Wednesday 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.