The Vietnamese government has granted permission to South Korean steelmaker POSCO to construct a $4.5 billion steel mill in the country in collaboration with a local partner.
The new mill, which will be specialized in the production of hot rolled steel products, will be located in Vietnam's central province of Khanh Hoa and will be built in cooperation with the country's top shipbuilder Vinashin. The new mill is expected to be completed by 2010.
The hot rolled mill will be the second steel mill built by POSCO in Vietnam. The South Korean company has already started construction work on a $1.3 billion steel plant in the southern province of Ba Ria-Vung Tau. This cold rolling plant is expected to start operations in 2009.