S Koreans start $139m steel mill

The POSCO VST Co Ltd Viet Nam, a subsidiary of South Korea-based POSCO group, held a groundbreaking ceremony yesterday for its new stainless steel cold rolling mill in the southern province of Dong Nai’s Nhon Trach District.

The US$130 million mill, to cover 39,000 square metres, is expected to operate in February 2012.

The mill will be the biggest stainless steel plant in the country, with the capacity of 150,000 tonnes per year and will employ 400 labourers.

Products will be provided for local demand and exported to Southeast Asian, European and American markets.

Big hopes

“The dynamic and potential of the Vietnamese economy has led us to expand investment, with the hope of increasing the total capacity for the mill to 285,000 tonnes in the future, meeting all local demand,” said Chung Joon Yang, managing director of POSCO group, who delivered the opening speech at the ceremony.

Viet Nam’s demand is high, and most stainless steel is imported.

Founded in South Korea in 1968, POSCO is the world’s fourth largest steel group. It established an office in Viet Nam in 1991. — VNS

Tags: Posco steel, Posco Vietnam