Workers inside Agrimeco’s steel plant in Van Dien, Hanoi. (Photo: dhsptn.edu.vn)Hanoi (VNA) - Vietnam’sMechanization Electrification Construction Corporation JSC (Agrimeco) andJapan’s JFE Steel Corporation (JFE) held an opening ceremony for the twocompanies’ newly merged unit, Agrimeco & JFE Steel Products Co., Ltd (ANJ)in Hanoi on November 28.
The new entity, ANJ, has aregistered capital of 2 million USD and is the first joint venture that JFESteel Corporation has established with a construction and steel-processingcompany in Vietnam.
As of February 17, 2017, JFEannounced the establishment of a joint venture with 50-50 percent shareholdingin Agrimeco, a contractor engaged in hydroelectric power plants and steelhigh-rise buildings, as well as processing construction materials.
Le Van An, chairman of Agrimeco,explained that despite the successful merger in February, both sides neededtime to understand each other’s working methods, and most importantly, to haveample preparation for upcoming international projects, hence the openingceremony in November.
‘As we have now secured some majorcontracts with other companies outside of Vietnam, we plan to utilise eachparty’s core strength to build one of the largest mechanical complex here inAsia,’ he added.
The joint venture will focus onimporting structural steel sheet and steel materials from Japan, which willthen be processed by Agrimeco and exported to neighbouring South East Asianmarkets, after it has consolidated operations in Vietnam.
According to Fukushima Isao, generaldirector of JFE Steel Vietnam Co., Ltd., in order to avoid competing with cheapChinese steel, the new unit will focus on high-end anti-corrosion products.
Domestic demand for constructionmaterials is expected to remain strong and stable as Vietnam continues activelyexpands its roads, railways, power plants and other transportationinfrastructure, consuming 18 million tonnes of steel annually, Fukushima added.
He also said that the Vietnamesehigh-end construction steel market is expected to nearly triple by 2025, whileintegrated steel works and steel products consumption is expected to growfurther.-VNA
VNA
