Kyoei Steel aims to produce 1.2 million tonnes of construction steel in Vietnam by 2020 (Photo: vietstock.vn)Hanoi (VNA) - Japanesesteelmaker Kyoei Steel Group has announced that it would build a 200 millionUSD reinforcing bar factory in northern Vietnam.
The plant is aimed at boostingthe company’s output capacity and reducing costs.
Construction is scheduled tostart at the end of this year, with the rolling mill expected to beginoperations in 2019 and the steelmaking plant to begin by 2020.
The Osaka-based group had begunplans to build a 500,000-tonne capacity steelmaking and rolling facility backin 2012 when it started operations in Vietnam. However, the company suspendedall new constructions in 2014 when the market slumped.
Currently, Kyoei Steel only rollssteel in Vietnam. The company processes steel billets bought from outside intobars and other products. However, market conditions in China have led to anincrease in billet prices. By setting up this steel factory, the electricfurnace steelmaker hopes to cut production costs.
[Steel production steadies, room for growth]
Kyoei Steel has already invested 170million USD in an electric furnace steel plant in the southern province of BaRia-Vung Tau. It is also contributing capital to Thi Vai International Portjoint venture. Once completed, in March 2018, the port will help Kyoei Steelimport more input material, thereby raising its production and transportationcapacity to 900,000 tonnes per year.
In September 2016, the Nikkeireported that Kyoei Steel aims to produce 1.2 million tonnes of constructionsteel in Vietnam by 2020, doubling its capacity of 550,000 tonnes in 2015 andaccounting for 10 percent of the steel market share in Vietnam.-VNA
VNA
