First hot rolling steel joint-venture founded in VN
08:45 | 13/02/2007
VNGOVNet – The signing ceremony was held in the morning of February 12 in Hanoi to establish the hot rolling steel joint-venture with a capacity of 2 million tons per year. This contract is made by Indian Group Essar, Vietnam Steel Corporation (VSC) and the Vietnam Rubber Corporation.

 

Photo: VNGOVNet

Under this joint-venture contract, the Liability-limited Essar Steel Vietnam Holdings Pvt (ESHL), the representative of Essar Group in Vietnam, holds 65% of stocks, VSC 20% and the Vietnam Rubber Corporation 15%.

ESHL will build a hot rolling steel plant with the total investment (stage 1) of US$ 527.3 million. The project is expected to be finished within 30 months since the investment certificate is licensed. The plant located in the Industrial Pakr Phú Mỹ 1, Bà Rịa-Vũng Tàu Province, will produce hot rolling steel rolls and sheets. It is expected that 50% of these products will come to cold rolling and zinc plating plants. The remaining is used in producing steel pipes, manufacturing steel structures, and steel products for mechanics, transport, and sea transport. According to the plan, the project will bring about a high economic efficiency, with a duration of capital return of 6-7 years.

At the ceremony, Mr. Đậu Văn Hùng, VSC General Director, said: "At present, Vietnam is consuming 6 million tons of steel, including 2 million tons of hot rolling steel fully imported from other countries. ESHL can be expanded to reach 3 million tons per year to meet the domestic demand and partly the estimated demand to 2010".

It is reported that Vietnam will establish a joint-venture to produce steels slabs. So, together with Essar Vietnam Project, the country’s steel sector, in the near future, will be able to form a metallurgical complex to make steel slabs, hot and cold rolling steel, and building steel.

 By Hoàng Nguyên Hồ

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