Vietnam Steel Corporation (Vietnam’s largest steel company), Vietnam Cement Industries Corporation (Vicem) and Tata Steel, world’s sixth largest and Asia’s first integrated steel company, signed a Joint Venture Agreement (JVA) for the proposed steel complex in Vietnam today. This 4.5 million ton per year steel complex will be set up in the Vung Ang Economic Zone in Ha Tinh Province. 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 signed the JVA 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 and officials of Vietnam Steel Corporation (Vnsteel), Vietnam Cement Industries Corporation (Vicem), Tata Steel and Vietnam Steel Association.

The Integrated Steel Plant will be built in three phases at a total estimated cost of US$ 5 bn. While the ultimate capacity of the steel complex will be 4.5 million tonnes per year, the first phase of the complex will be a Cold Rolling Mill to be commissioned by end 2010.

Tata Steel will have a stake of 65%, Vnsteel will have a stake of 30% and Vicem will hold 5% in the Steel project.

It may be recalled that the MOU for this steel project was signed on 29th May 2007. Subsequently Definitive Agreements were signed today after completion of detailed feasibility studies.

Commenting on the occasion, Mr. B Muthuraman, Managing Director, Tata Steel 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. Together, we look forward to seeing this country grow and prosper. 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. On our part, we remain committed to bring high standards of corporate governance, environment protection, and a strong culture of striving for excellence. We also highly appreciate the support we have got from the Government of Vietnam & the leaders of Ha Tinh Province proving once again that Vietnam is a cherished destination for serious foreign investors”.

On the occasion of signing of the Definitive Agreements, Mr Dau Van Hung, President VNSTEEL said, “The JV will enable VnSteel to expand and create a substantial knowledge and technical base, while building a long term relationship with Tata Steel. In Tata Steel, we have a strong partner to help us exploit the opportunities within our country, and make the most of our market potential. Setting up of an integrated steel plant will enhance Vietnam’s status in the steel industry, and maximize the value of Vietnam’s natural resources while strengthening our national economy and increasing job opportunities. We look forward to an enduring partnership with our JV partners to meet the challenges of the future”.

Echoing the same sentiments, Mr Nguyen Ngoc Anh, General Director VICEM opined, “Vicem is honoured to have this unique opportunity to establish a JV with Tata Steel & VnSteel and trust that this venture will add momentum to the economic progress of our country, and go a long way in addressing the country’s demand for self- sufficiency in steel. Vietnam is a very attractive market, with a growing population and demand for steel products, and this joint venture will be a strong platform to pursue growth opportunities”.

Tags: calls, daytrading, free calls, intraday, tips

Similar Posts:

• Vietnam’s Prime Minister has issued a decree about a potential military call-up, amid rising tension with China.
• Tata Steel Global Minerals enters into agreement with NML
• SAIL to buy 50% stake in Steel Complex
• Sesa Goa plans Rs 30,000 cr foray into steel
• Tata Power completes financing for Maithon thermal power