Essar to set up $527 mn steel mill in Vietnam

Essar Steel Vietnam Holdings Private, Singapore (ESVHL), on Monday signed a joint venture agreement with state owned Vietnam Steel Corporation (VSC), and Vietnam General Rubber Corporation (GERUCO ) to form a joint stock company to set up Hot Strip Mill plant in Vietnam. The JV has been christened Essar Vietnam Steel Corporation.

The JV company will have an initial capacity of 2 million tonnes per annum of Hot Rolled Coils, Sheets and Skin Passed Coils. The project is estimated to cost $527 million and is expected to be completed in 30 months. ESVHL will hold 65% equity, VSC will hold 20% equity and Vietnam General Rubber Corporation will hold the balance 15% equity in the JV.

The project will be located in Phu My Industrial Zone, Baria Vung Tau province in southern Vietnam. This province well connected by road and is in proximity to the proposed port.