Tata Steel Ltd has signed an agreement with Vietnam Steel Corp to undertake a
feasibility study for building a cold rolling mill for the state-run firm, Tata
Steel said in a statement.
Steel, the world''s sixth-largest steelmaker, said it will hold a minimum 65 per
cent stake in the project, which will be phased over 10 years, as well as a 30
per cent stake in the Thach Khe Iron Ore Joint Stock Company which will undertake
mining in the Thach Khe iron ore mine in Vietnam.
Steel had, on 29 May, signed a memorandum of understanding with Vietnam Steel
over a steel project in the Ha Tinh Province of Vietnam. Tata Steel''s Singaporean
unit NatSteel Ltd already has a joint venture with Vietnam Steel.
two companies are also carrying out a separate feasibility study for a steel project
in Vietnam''s Ha Tinh province, it added.
the companies firmly believe that the simultaneous development of the domestic
primary steel and value-added steel production is fundamental to the sustainable
growth of the steel industry in Vietnam," the statement said.
Steel did not give details of potential investments.
firm''s September quarter net profit rose a better-than-expected 8 per cent due
to higher metal sales and foreign exchange gains.
demand from construction and the auto industry and declining exports from China
kept steel prices strong, and analysts expect Tata Steel to gain significantly
from this year''s $13 billion purchase of Anglo-Dutch steelmaker Corus Group.
Steel has an annual steel capacity of two million tonnes, while Tata Steel''s combined
capacity after the acquisition of Corus is 25.6 million tonnes.