Monday, August 20, 2007

South Korea to build 8 million ton mill in Vietnam

POSCO to Build 8 Mil. Ton Mill in Vietnam
POSCO plans to build an integrated steel mill with an
annual production capacity of eight million tons at
Van Phong Bay on Vietnam's south-central coast.

The company is currently constructing cold-rolled and
hot-rolled steel plants in Vung Tau in the south. Once all
the mills are finished, POSCO will have a complete
one-stop steel manufacturing system in the Southeast Asian
country. Total investment is an estimated W7 to W8 trillion.

According to POSCO and Vietnamese media Sunday,
the Korean steelmaker signed a memorandum of
understanding with Vietnam's largest state-owned
shipbuilder Vinashin in May and is reviewing the
project's feasibility.

Van Phong Bay has been tentatively decided as
the construction site. The Hanoi government has
designated the bay, a logistics hub of Khanh Hoa
province, as an economic zone and plans to build
an international container harbor there by 2020.

In the project's first stage, POSCO and Vinashin
will invest US$4.5 billion from 2009 to build a four
million ton capacity mill. The second phase of project,
planned for 2012, will hike the capacity to as much
as eight million tons.

POSCO said the mill will likely employ the
company's proprietary FINEX technology which
was successfully commercialized this year, as
requested by the Hanoi government.