Tata Steel acquires controlling stake in rolling mills in Vietnam

New Delhi, Mar 8 (UNI) Tata Steel Ltd will acquire controlling stake in two rolling mills with 4,30,000 tpa capacity in Haiphong, Vietnam, for 41 million dollars as part of its focus on regional consolidation, NatSteel Asia Pte Ltd (NSA), a wholly-owned subsidiary of the company has entered into an agreement to acquire 100 per cent equity in a 2,50,000 tpa bar/wire rod mill in SSE Steel Ltd and 70 per cent equity holding in Vinausteel Ltd, which produces 1,80,000 tpa reinforcing bar.

The remaining 30 per cent in Vinausteel Ltd is held by Vietnam Steel Corporation (VSC).

The transaction is likely to be completed by June.

''SSE Steel has one of the most modern rolling mills in Vietnam and the Vinausteel brand is one of the best known brands in Vietnam for reinforcement bars. The acquisition of these two mills will allow the company to complement, strengthen and expand its current presence in Vietnam,'' a Tata Steel statement said.

The company through its subsidiary presently operates a 1,00,000 tonnes p a reinforcing bar rod mill in joint venture with VSC in Thai Nguyen which is located about 70 km north of Hanoi.

The acquisition demonstrates the company's focus on de-integration strategy and will provide it with larger footprint in the growing South-East Asian region including Vietnam, the statement added.

UNI