Tata Steel has signed a memorandum of understanding (MoU)
with Vietnam Steel Corporation (VSC) to jointly build
a 4.5 million tonne steel plant in Ha Tinh province in
Steel managing director B Muthuraman and VSC president
Tau Van Hung signed the MoU in Hanoi.
Steel, the world''s sixth largest steel maker, would hold
65 per cent stake in the joint venture and the remaining
would be owned by VSC. The proposed plant will be build
over a period of 10 years.
MoU will enable Tata Steel to extend an equity contribution
of 30 per cent in Thach Khe iron ore mining project. The
compay also expects to have a 30 per cent stake in Thach
Khe iron ore joint stock company, which would undertake
mining in due course of time.
closure for the project would be achieved once the study
Steel already has a joint venture with VSC in rolling
mills through Singapore-based Natsteel and the company
believes that the proposed project will have significant
economic impact in terms of optimisation of local resources,
development of technology and earning foreign exchange.
Vietnam has a GDP growth of 8 per cent and its current
per capita steel consumption is over 85 kg.