Indian steel producer Tata Steel Ltd. has announced the signing of a memorandum of understanding (MoU) with Vietnam Steel Corporation (VSC) regarding a proposed cold rolling mill project in Vietnam.
On May 29 this year Tata signed an MoU with VSC for a 4.5 million ton steel project in Vietnam's Ha Tinh Province. The new MoU is foreseen to boost collaboration between the two companies concerning the mill project.
Tata Steel will have a 65 percent stake in the project, which is expected to be initiated after the finalization of the feasibility study.
Commenting on the new MoU, Tata said, "Vietnam, with a buoyant economy, is a significant market for steel and raw material resources, as well as an attractive destination for steel making and value added steel production." The company added that the scope and size of the project would be determined after the feasibility study.
With a view to the project in question, Tata Steel has already established a joint venture with VSC through Singapore-based NatSteel, which is a wholly-owned subsidiary.
Meanwhile, Tata Steel has also said that construction work on the greenfield steel plant at the Kalinganagar Industrial Complex will start within two months, as they have received the necessary clearances for the rehabilitation of more than 1,200 families.