Japan's biggest steelmaker Nippon Steel Corp. (Nippon Steel) has decided to acquire a stake in a cold rolled steel mill in the southern province of Ba Ria-Vung Tau in Vietnam, previously being developed solely by the Vietnamese subsidiary of South Korean steel giant POSCO.
The percentage of the stake has not been officially disclosed yet; however, it is expected to be in the range of 15 to 30 percent. Based on the acquisition agreement which was inked last October, Nippon Steel had agreed to acquire a stake of between 10 percent and 20 percent in the mill.
According to a statement issued by Nippon Steel following the October agreement, the company intended to invest around $37 million.
The mill is a part of POSCO's larger $1.3 billion steel plant development in Ba Ria-Vung Tau, including hot and cold rolling mills.