Tata Steel to build steel complex in Vietnam

Mumbai: Tata Steel has signed a joint venture agreement with Vietnam Steel Corporation (VnSteel) and Vietnam Cement Industries Corporation (Vicem) for establishing a steel complex in Vietnam .

A 4.5-million-tonne a year steel complex will be set up in the Vung Ang Economic Zone in Ha Tinh Province. The integrated steel plant will be built in three phases at a cost of $5 billion. Vnsteel is Vietnam’s largest company having manufacturing plants and a large distribution system across the country.

While the ultimate capacity of the steel complex will be 4.5 million tonnes a year, the first phase of the complex will be a cold rolling mill, to be commissioned by 2010 end. Tata Steel will have a 65 per cent stake, Vnsteel 30 per cent and Vicem five per cent in the steel project.

Mr Dau Van Hung, President of Vietnam Steel Corporation, Mr Nguyen Ngoc Anh of Vietnam Cement Industries Corporation and Mr B. Muthuraman, Managing Director of Tata Steel inked the deal.

The MoU for the project was signed on May 29, 2007. The definitive agreements were signed on Wednesday after completion of detailed feasibility studies, a Tata Steel release said.

Mr Muthuraman said, “We are delighted to enter into the joint venture with VnSteel and Vicem, and believe that this partnership is well placed to make the most of the tremendous growth potential Vietnam possesses. .

“ We also appreciate the support we have got from the Government of Vietnam and the leaders of Ha Tinh Province proving once again that Vietnam is a cherished destination for serious foreign investors.”

Mr Dau Van Hung said the joint venture will enable VnSteel to expand and create a substantial knowledge and technical base, while building a long term relationship with Tata Steel.

Tata Steel informed the stock exchanges that it will have a 30 per cent stake in Thach Khe Iron Ore Joint Stock Company which would undertake mining in the Thach Khe iron ore mine. Tata Steel’s shares closed flat at Rs 610.40 on the NSE.