INDIA BUSINESS WORLD - August 1st - August 31st - 2008
TATAS IN $5-B JV WITH VIETNAM STEEL, CEMENT CO
THE world’s sixth-largest steel maker Tata Steel has joined hands with Vietnam Steel and Vietnam Cement Industries Corp to set up a 4.5 million tonne steel plant in the south-east Asian country.
The estimated investment in the proposed project, for which the trio inked a joint venture agreement, would be $5 billion.
The Indian steel giant, through its whollyowned arm in Singapore Tata Steel Global Holding Pte, would hold 65% stake in the joint venture while Vietnam Steel Corp (VSC) and Vietnam Cement Industries Corp would have 30% and 5% stakes, respectively, a statement from Tata Steel said.
It added the JV would enable Tata Steel to extend an equity contribution of 30% in Thach Khe Iron Ore mining project.
Commenting on the tie-up, Tata Steel MD B Muthuraman said: “We are delighted to enter into the JV with Vietnam Steel and Vicem, and believe that this partnership is well placed to make the most of the tremendous growth potential Vietnam possesses.”
Last year in May, Tata Steel had signed a memorandum of understanding with VSC for the proposed steel plant that would come up in Ha Tinh province of Vietnam. The feasibility study for it has already been completed.
The integrated steel plant would come up in three phases and would have a cold rolling mill, which would be commissioned by 2010-end.
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