Vietnam says to build $ 527 mln steel mill with Essar

HANOI, Feb 12 (Reuters) State-run Vietnam Steel Corporation (VSC) will establish a 7-million venture with India's Essar group to produce hot-rolled steel, a Vietnamese official said on Monday.

''The company will be a share-holding entity with Essar as one of the founding shareholders,'' the official said.

VSC and Vietnamese rubber group Geruco would sign a contract with Essar later in the day to establish the company in which Essar would hold a majority 65 percent stake.

REUTERS DKS BST0758