One of the largest Taiwanese plate producers Chun Yuan Steel Co. (Chun Yuan) has decided to participate in the Vietnamese joint venture of Taiwan's largest steel producer China Steel Corporation (CSC) and Japanese Sumitomo Metal Industries (Sumitomo).
Chun Yuan said it will invest $11.48 million in this joint venture steel mill to help to secure stable supplies of upstream raw materials and also to enter the Southeast Asian steel market in the coming years.
At the end of the last year, CSC and Sumitomo announced the creation of a joint venture steel mill in Vietnam for production of cold rolled and galvanized steel. The mill is designed to have an annual production capacity of 1.7 million metric tons with a total cost of $1.15 billion.
CSC will hold a 25 percent stake in this joint venture, while the balance is to be held by Sumitomo and other partners. The new mill is expected to launch production in 2011.