Wednesday, August 13, 2008;
HANOI, Aug 14, 2008 (AsiaPulse via COMTEX) -- PowerRating -- Vietnamese and Indian partners will jointly build a 4.5 million-tonne steel complex at a cost of US$5 billion in the central province of Ha Tinh.
The Vietnam Steel Corporation (VnSteel), the Vietnam Cement Industry Corporation (VICEM) and the India-based Tata Steel signed a contract for the project in Hanoi on August 13.
Tata Steel will hold a 65 per cent stake, while VnSteel, 30 per cent and VICEM, 5 per cent.
Located in the Vung Ang Economic Zone, the project will build a cool-rolled steel plant in the first phase, which is scheduled for completion in 2010.
Tata Steel managing director Muthuraman said at the signing ceremony that Vietnam is an ideal destination for foreign investors and pledged to meet all requirements for corporate management, environmental protection and healthy business.
According to VnSteel General Director Dau Ngoc Hung, the agreement will facilitate his corporations move to expand operations and establish long-term ties with its strategic partner Tate Steel the world's 6th largest steel producer - to jointly explore opportunities and market potentials both in and outside Vietnam .
The project is expected to improve Vietnam's position in the global steel industry and fully tap the countrys natural resources, Hung said.
Formosa Group from Taiwan in early July began construction of an iron and steel complex also at the Vung Ang IZ.
The complex is designed to be capable of churning out 7.5 million tonnes of iron and steel a year.
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