New Delhi, Oct 31 (UNI) Country's largest steel maker Tata Steel today said it has inked a Memorandum of Understanding (MoU) with Vietnam Steel Corporation (VNSTEEL) to set up a Cold Rolling Mill complex in Vietnam.
Tata Steel in cooperation with VNSTEEL will undertake a feasibility study for the Cold Rolling Project. On the successful completion of the study and financial closure, Tata Steel will have a stake of 65 per cent and VNSTEEL will have 35 per cent in the CRM complex, said a statement.
Tata Steel already has a Joint Venture with VNSTEEL in Rolling Mills through Natsteel, which is a Singapore based subsidiary of Tata Steel.
Tata Steel and VNSTEEL are also in the process of carrying out a feasibility study for a steel project in Ha Tinh province for which a MOU was signed on 29th May 2007 in Hanoi. The proposed Cold Rolling Mill project will further strengthen the collaboration between VNSTEEL and Tata Steel.
Vietnam, with a GDP growth of over eight per cent and per capita steel consumption of over 85 Kgs, is expected to see a significant increase in steel consumption including value added steel.
Vietnam Steel Corporation was established in 1995 by a merger of Vietnam Metal Corporation and Steel Corporation. VNSTEEL is Vietnam's largest steel company.