Taiwan-based Lian-Phui Development Co., Ltd. - subsidiary of Taiwan's second largest steel group, E-United Group - has signed a joint venture agreement with Thailand-based Tycoons Worldwide Group to invest in an integrated steel mill project in Vietnam.
The project, which is planned to be located in Dung Quat Industrial Park in Quang Ngai province, Vietnam, will be designed to have an annual capacity of two million metric tons in the first phase (2007-2009). In the second phase, the mill's production capacity will be increased to five million metric tons. The investment marks one of the biggest wholly-foreign-invested projects at Dung Quat industrial park.
E-United Group will have a ninety percent stake in the JV, while Tycoons will hold the remaining ten percent. The JV will supply 1,800,000 mts of semi-finished products to E-United Group, while it will supply 200,000 mts to Tycoons.