The new plant is expected to have an annual production capacity of four million tons in the initial phase and to double this figure in the second phase.
POSCO plans to cooperate with Vietnam's largest shipbuilder, Vietnam Shipbuilding Industry Group (Vinashin), in developing the project, in which the latter will contribute 30 percent of the capital required.
POSCO intends to complete the feasibility study in 2007, while the construction of the plant to be located next to a key seaport is foreseen to be started in 2009 and finalized in 2010.
As reported earlier this month by SteelOrbis, POSCO has also started construction studies for a cold rolled and hot rolled steel mill in Vietnam's southern province of Ba-Ria -Vung Tau.