Tata Steel, VSC sign MoU for 4.5 MT steel plant

New Delhi, May 29: World's sixth largest steel maker Tata Steel today signed an MoU with Vietnam Steel Corporation (VSC) for a 4.5 million tonnes (MT) steel plant and will hold 65 per cent stake in the venture located in Ha Tinh province of Vietnam.

The MoU will enable the country's largest steel company to extend an equity contribution of 30 per cent in Thach Khe Iron Ore mining project.

The proposed project in Ha Tinh will be completed over a period of 10 years, a statement said.

Both the companies will undertake a feasibility study for the steel project. Financial closure for the project would be achieved once the study completes, the statement added.

The agreement was signed between Tata Steel Managing Director B Muthuraman and VSC President Tau Van Hung in Vietnam.

Tata Steel has a joint venture in rolling mills with VSC through its Singapore-based subsidiary NatSteel.

Vietnam has a GDP growth of 8 per cent and its current per capita steel consumption is over 85 kg.

UNI