The Formosa group of Taiwan (China) is expected to seal an investment deal with the Japanese-based JFE Steel Corporation in August to jointly carry out its steel complex in central Ha Tinh province’s Vung Ang Economic Zone.

Under the deal, the Japanese firm will contribute 30 billion yen (around 242 million USD) to the project, equivalent to 5 percent of the total investment. It will also help with techniques in processing semi-finished products.

As a stakeholder, JFE will secure the supply of steel products for other Japanese enterprises investing in the Southeast Asian market.

JFE revealed its intention to export the products made in Vietnam to replace those currently produced in Japan. The firm will focus on construction steel bars first with steel panels for the automobile industry down the road.

JEF calculated that benefits from the project could be generated in the midterm and is considering further investments in the second phase of the project.

The first phase of construction of the Formosa steel complex, worth almost 10 billion USD, is scheduled to be operational in 2016 with an annual productivity of 7 million tonnes of steel products.

Formosa plans to invest an additional 10 billion USD in the project in the second phase and increase its capacity to 20 million tonnes.

Japanese-invested steel plant expansion inaugurated

President Truong Tan Sang attended a ceremony to inaugurate the expanded construction of a steel plant invested by Japanese steelmaker Vina Kyoei in the Phu My I Industrial Park in Tan Thanh district, the southern province of Ba Ria-Vung Tau on July 24.

Speaking at the event, the President lauded the achievements reaped by Vina Kyoei over the last 21 years in the locality, stressing that the Japanese investor’s success is also Vietnam’s success.

He said the two countries’ governments signed a number of cooperation agreements, especially in industry. With support provided by the Japanese and its world’s leading technology, Vietnam’s industrial sector is expected to develop strongly, he noted.

President Sang said believed that with its newly-inaugurated project, the Vina Kyoei Company will continue to operate effectively and stimulate economic growth in the southern region and the locality in particular.

Since launching operations in Ba Ria-Vung Tau in 1994 with 69 million USD in investment, Vina Kyoei has manufactured 6 million tonnes of steel for construction so far. Its plant’s expansion is expected to help double the firm’s production.

As the first joint venture between Japan and Vietnam in manufacturing steel, Vina Kyoei plans to increase its annual productivity to 800,000-1,000,000 tonnes of steel to meet the increasing demand in the Vietnamese market.

VNA