On 12 February 2007, Essar Steel Vietnam Holdings (ESVHL) forged a joint venture with Vietnam Steel Corporation (VSC) and Vietnam General Rubber Corporation (GERUCO) to set up a $527 million steel plant in that country.

The JV is christened 'Essar Vietnam Steel Corporation' . The facility to be located in Phu My Industrial Zone, Baria Vung Tau province, in south Vietnam, will have a capacity 2 million tpa of hot-rolled coils, sheets and skin passed coils. Work on the project is expected to be completed within 30 months.

ESVHL will own 65 per cent equity in Essar Vietnam Steel Corporation, VSC will hold 20 per cent and GERUCO 15 per cent. ESVHL is a subsidiary of Essar Steel Holdings (ESHL), which is a part of Essar Global with interests in steel, energy, power, communications, shipping and logistics and projects.

VSC, which is a fully-owned unit of the Vietnam government, has several steel plants, both in north and south of Vietnam. The two recent plants commissioned by VSC are a 0.4 million tpa cold rolling plant and a 0.5 million tpa Mini Mill - both located in Phu My Industrial Zone, Baria Vung Tau province in southern Vietnam.

Also See:

Vietnam Steel plans joint venture with Essar (07-Mar-06)