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Essar Steel Vietnam Holdings Private Limited,
Singapore (ESVHL), today signed a joint venture
agreement with Vietnam Steel Corporation (VSC),
and Vietnam General Rubber Corporation (GERUCO
) - both state owned companies to form a joint
stock company. The JV has been christened Essar
Vietnam Steel Corporation.
The JV Company will set up a Hot Strip Mill plant,
and 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
US $ 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.
Vietnam currently consumes 6 million tonnes of
steel of which hot rolled coils is 2 million tonnes.
The steel consumption is expected to go up to
10 million tonnes by 2012. In the absence of a
Flat steel plant, Vietnam imports its entire requirement
of Hot Rolled Coils. This project is expected
to substitute imports of hot rolled coils into
the country, saving valuable foreign exchange.
About Vietnam Steel Corporation
VSC is a fully owned unit of the Government of
Vietnam and has several steel plants, both in
North and South of Vietnam. The two recent plants
commissioned by VSC are a 0.4 million tonne per
year cold rolling plant and a 0.5 million tonne
per year Mini Mill - both located in Phu My Industrial
Zone, Baria Vung Tau province in southern Vietnam.
About Vietnam General Rubber Corporation
GERUCO is the largest rubber company in Vietnam
and is a global supplier of natural rubber &
latex.
About Essar Steel Vietnam Holdings Pvt Limited
Essar Steel Vietnam Holdings Private Limited is
a subsidiary of Essar Steel Holdings Limited.(ESHL).
ESHL is part of Essar Group which has interests
in Steel, Energy, Power, Communications, Shipping
& Logistics and Projects. Essar Group has
an asset base of USD 6 billion and employs 20,000
people in 50 locations world-wide.
Essar's steel business has production facilities
in India (4.6 million tonnes per annum) and Indonesia
(0. 4 million tonne per annum Colled Rolled products).
It is one of India's largest producer of steel
in the private sector and its largest exporter
of flat steel.
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