The Italian Danieli group has officially bought a 20 percent share in the Vietnam Steel Corporation (VNSteel) which is building the country’s first sheet steel plant with an annual capacity of 2 million tonnes.

A contract on the purchase was signed between the two sides in Hanoi on Mar. 11.

Speaking at the signing ceremony, Deputy Minister of Industry and Trade Le Duong Quang said that the project, capitalised at 550 million USD, would make an important contribution to the steel sector’s development strategy and meet domestic demand for the product, as well as help reduce the need for the import of such product.

He added that the project would help boost political and economic cooperation between Vietnam and Italy .

According to Antonello Mordeglia, Danieli Executive Vice President, the investment is proof of the group’s confidence in Vietnam ’s business environment and the capacity of its Vietnamese partners.

Danieli is one of the world’s largest suppliers of equipment for steel production projects and has 10 years of experiences in Vietnam.