Japanese steel tubes and pipes producer Sumitomo Metal Industries (Sumitomo Metals) and Taiwan-based steel producer China Steel Corporation (CSC) have announced the receipt of approval from the Vietnamese government for their joint venture (JV) investment in an advanced steel sheet project. The establishment of the JV was delayed due to factory site changes ordered by the local government.
As SteelOrbis previously reported, the new steel sheet mill, China Steel Sumikin Vietnam Joint Stock Company (CSVC), with a planned production capacity of 1.6 million mt per year, will be specialized in the production of hot-cut sheet, pickling and oiling steel coil, cold rolled coil, and electromagnetic steel sheet for the Vietnamese market and for the markets of surrounding countries. The mill is scheduled to start production at the beginning of 2012.
The total investment in the new steel sheet JV amounts to about $1.15 billion, being one of the largest collaborations between Sumitomo Metals and CSC Group.
Both companies are to provide technical support to CSVC to meet growing requirements from customers in Asia in terms of quantity and quality of products.