Tata Steel Ltd, the world’s sixth largest steel manufacturer, on Wednesday, announced that the company has entered in to a joint venture (JV) with Vietnam Steel Corporation (VSC) and Vietnam Cement Industries Corporation (Vicem) to build a 4.5 mtpa plant at the Ha Tinh province in Vietnam.
The company in its statement to BSE informed that, through its wholly owned subsidiary in Singapore – Tata Steel Global Holding Pte Ltd, it would hold a 65% stake in the JV and the remaining would be owned by VSC. The JV would enable Tata Steel to extend an equity contribution of 30% in Thach Khe Iron Ore mining project, it said.
Tata Steel Ltd shares on Wednesday were 0.41% to close at Rs 610.45 on the Bombay Stock Exchange. The company further said Tata Steel along with VSC had undertaken a feasibility study for the steel project, following which the JV has been signed.
Tata Steel in May last year, had entered into a Memorandum of Understanding (MoU) with VSC for the said alliance.
The company in its annual report FY08 said that it has entered into two MoUs with Vietnam Steel Corporation for setting up a 4.5 mtpa steel project (in 2 phases) and a cold rolling mill in the Ha Tinh province in Vietnam. The JV company would further invest in the mining projects in Vietnam, subject to financial viability being established. Tata Steel is already in a joint venture with VSC in rolling mills through Singapore-based Natsteel.