The FINANCIAL -- Siemens Metals Technologies has received an order from Thep Viet Steel Co. Ltd. of Vietnam to equip a new bar mill at the company's Ba Ria facility.
The project includes supply of the mechanical components as well as the electrical and automation systems. The volume of the order is in the two-digit million euro range. The new bar mill is scheduled to start production in the middle of 2009.
According to Siemens, the Thep Viet Steel Corporation is a leading producer of structural steel in Vietnam. At the moment, the company is building a new bar mill in Ba Ria-Vung Tau province in the south-east part of the country. The new plant will have an annual capacity of 450,000 metric tons. The rolling mill is part of an expansion project, the aim of which is to reduce Vietnam's dependence on imported steel products.
For the new plant, Siemens is supplying the mechanical equipment. This includes a re-heating furnace for the steel billets, 19 rolling stands, a 78 meter-long cooling section as well as cutting and handling machines. The electrical equipment as well as the basic and process automation systems are also part of the scope of supply. Apart from this, Siemens is providing consulting services for construction and commissioning of the new plant.
One of the main reasons why the contract was awarded to Siemens was the good experience Thep Viet Steel had had with a bar and wire rod mill which belongs to its subsidiary, Pomina Steel Co. Ltd., in Binh Duong province, and was also equipped by Siemens Metals Technologies.