Tata Steel inks MoU with Vietnam Steel
Tata Steel joined hands with VSC to build a 4.5 million tonne (MT) steel plant in Ha Tinh province in Vietnam.
By PTI |
NEW DELHI: World's sixth largest steel maker Tata Steel on Tuesday signed an MoU to form a joint venture with Vietnam Steel Corporation (VSC) to build a 4.5 million tonne (MT) steel plant in Ha Tinh province in Vietnam.
"The MoU was signed between Tata Steel Managing Director B Muthuraman and VSC President Tau Van Hung here this morning," Tata Steel senior official Indronil Sengupta told the media over telephone from Hanoi.
The Indian steel giant 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.
The MoU will enable Tata Steel to extend an equity contribution of 30 per cent in Thach Khe Iron Ore mining project.
"We will also have a 30 per cent stake in Thach Khe Iron Ore Joint Stock Company, which would undertake mining in due course of time," Sengupta said.
ADVERTISEMENT
According to the MoU, the salt-to-software giant along with VSC will undertake a feasibility study for the steel project. Financial closure for the project would be achieved once the study completes.Tata 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, the spokesman added.
Vietnam has a GDP growth of eight per cent and its current per capita steel consumption is over 85 kg.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
