Tata Steel to develop steel complex in Vietnam

Vietnam Steel Corporation (Vnsteel), Vietnam’s largest steel company, Vietnam Cement Industries Corporation (Vicem) and Tata Steel, the world’s sixth largest steel company, signed a joint venture agreement today for the proposed $ 5 billion steel project in Vietnam today.

The steel complex would be set up in the Vung Ang Economic Zone in Ha Tinh Province. Dau Van Hung, president of Vietnam Steel Corporation, Nguyen Ngoc Anh of Vicem and B Muthuraman, managing director of Tata Steel signed the agreement at a ceremony held in the head office of Vietnam Steel Corporation in Hanoi in the presence of H E Lal T Muana, Indian ambassador to Vietnam, Antonio Berenguer, Trade Counsellor, Delegation of the European Commission to Vietnam, Mai Van Tinh, Chairman, Vietnam Steel Corporation, Indronil Sengupta, Chief Executive — South East Asia Projects, Tata Steel, among others.

The integrated steel plant would be built in three phases while the ultimate capacity of the steel complex would be 4.5 million tonnes.

The first phase would be a cold rolling mill to be commissioned by end-2010. Tata Steel currently has a capacity of around 30 million tonnes.

Tata Steel would have a stake of 65 per cent, Vnsteel would have 30 per cent and Vicem would hold five per cent in the steel project.

The MoU for the steel project was signed on May 29, 2007.

The definitive agreements were signed today after completion of detailed feasibility studies.

Commenting, B Muthuraman, managing director, Tata Steel said, “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.”