Japanese steelmaker Kyoei Steel announced that it will build a steel rolling mill in the North of Viet Nam in order to both boost output capacity and cut down on costs, according to Nikkei Asia.
Construction will be conducted by the end of this year, with the rolling mill expected to come online in 2019 and the steelmaking facility in 2020.
The Osaka-based company began planning a new steelmaking and rolling facility with an annual output capacity of 500,000 tons back in 2012 when it acquired 70 per cent stakes of Tam Diep rolling mill in Ninh Binh province, Vietnam. However, it suspended all new construction in 2014 amid a tougher market.
Kyoei Steel currently can only roll steel in Vietnam. It processes steel billets purchased from the outside into bars and other products. But market conditions in China have led to an increase in billet prices. With this project, Kyoei hopes to cut production costs.
In 1994, Kyoei, Mitsui Corporation, Marubeni-Itochu Steel Corporation and Vietnam Steel Corporation set up a Vina Kyoei joint-venture with a design capacity of 1.3 million tons per year. This company now accounts for about 10 per cent of the domestic construction steel market shares, mainly in the South of Viet Nam.
In addition to the steel sector, Kyoei has invested in the US$56-million project of international Thi Vai port in Ba Ria Vung Tau province, Viet Nam.
