News Room - Steel Industry

Posted on 15 Aug 2007

POSCO to build USD 4.5 billion steel plant in southern Vietnam

It is reported that South Korea's POSCO Group will build a hot rolled steel plant at a cost of USD 4.5 billion in central Vietnam's Khanh Hoa province. The factory, to come up in Dam Mon peninsula will have an initial annual capacity of 4 million tonnes which will later be doubled.

POSCO has tied up with local shipbuilding giant Vinashin to develop the project. Vinashin, known formally as the Vietnam Shipbuilding Corporation, will contribute 30% of the capital required for the project. POSCO said in a statement that it had signed a MoU with Vinashin for a feasibility study to be completed by year end ahead of construction next year. The plant will be ready after 2010.

POSCO began work earlier this month on a USD 1.13 billion cold rolled and hot rolled steel complex in the southern Ba Ria Vung Tau province. It will produce 700,000 tons of cold rolled products annually from 2009 while the hot rolled steel facility will see construction kick off only in 2010. The facility will have an annual capacity of 3 million tons.

POSCO is also working on a USD 13.8 million 100,000 tonne plant in the southern Dong Nai province, which will go stream in June 2008. Its feedstock will come partly from the POSCO Ba Ria Vung Tau province based steel complex.

POSCO hopes to develop Vietnam as a gateway to the Southeast Asian market and expects to secure a frontline production base in the region by pursuing its plan to link its Vietnamese operation to ones in China and India, enabling it to obtain greater global competitiveness in the production and supply of steel based products.