Date:14/08/2008 URL: http://www.thehindu.com/2008/08/14/stories/2008081452471800.htm

Business

Tata Steel pact with Vietnam Steel

Special Correspondent

To set up a 4.5 m tonnes integrated steel complex in Ha Tinh Province

KOLKATA: Tata Steel has signed a joint venture agreement with Vietnam Steel Corporation (VNSTEEL) and Vietnam Cement Industries Corporation (VICEM)) for a proposed 4.5 million tonnes per annum integrated steel complex in Vietnam. The project will come up in Vung Ang Economic Zone in Ha Tinh Province.

$5 billion project

The project will be built in three phases at an estimated cost of $5 billion with a cold rolling mill being set up in the first phase by 2010. While Tata Steel will have a 65 per cent stake in this project, VNSTEEL will have 30 per cent and VICEM five per cent. Vietnam Steel Corporation is Vietnam’s largest steel company.

The MoU for this steel project was signed on May 29, 2007, and the definitive agreements were signed on Wednesday after the completion of detailed feasibility studies, a Tata Steel release said.

Mr. Muthuraman said the partnership was well placed to make the most of the tremendous growth potential that Vietnam possesses. VNSTEEL President said the joint venture would enable his company to expand and create a substantial knowledge and technical base while building a long-term relationship with Tata Steel.