Tata Steel enters JV with Vietnamese cos. to set up $5 billion steel plant

"The JV will enable VN Steel to expand and create a substantial knowledge and technical base, while building a long term relationship with Tata Steel. In Tata Steel, we have a strong partner to help us exploit the opportunities within our country, and make the most of our market potential. Setting up of an integrated steel plant will enhance Vietnam's status in the steel industry, and maximize the value of Vietnam's natural resources while strengthening our national economy and increasing job opportunities. We look forward to an enduring partnership with our JV partners to meet the challenges of the future," said Dau Van Hung, president, VN Steel. VN Steel is currently Vietnam's top steel maker with a capacity of around 5 MTPA and the new plant will almost double the annual production capacity for the country, which contributes less than 0.5 percent of the world's total annual production of 1.34 billion tonnes.

"VICEM is honored to have this unique opportunity to establish a JV with Tata Steel and VN Steel and trust that this venture will add momentum to the economic progress of our country, and go a long way in addressing the country's demand for self-sufficiency in steel. Vietnam is a very attractive market, with a growing population and demand for steel products, and this joint venture will be a strong platform to pursue growth opportunities," said Nguyen Ngoc Anh, general director, VICEM.

Tata Steel's announcement comes within days of its decision to scrap its proposed $3 billion investment plan in Bangladesh due to lack of commitment from the state government which is suffering from political instability.

ABOUT TATA STEEL

Established in 1907, Tata Steel has grown to become the world's 6th largest steel company with an existing annual crude steel capacity of 30 million tones after it acquired Anglo-Dutch steel maker Corus for nearly $13 billion. Asia's first integrated steel plant and India's largest integrated private sector steel company, Tata Steel is now the world's second most geographically diversified steel producer, employing over 82,000 people and with operations in 27 countries and commercial presence in over 50 countries.

Featuring in the Fortune Global 500 Companies list, Tata Steel completed 100 glorious years of existence on August 26, 2007 following the ideals and philosophy laid down by its founder, Jamsetji Nusserwanji Tata. The first private sector steel plant which started with a production capacity of 1,00,000 tonnes has transformed into a global giant.