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Tata Steel inks MoU with Vietnam Corpn.

Special Correspondent

To set up 4.5 million tonne steel complex

FORGING A TIE-UP: B. Muthuraman (left), Managing Director of Tata Steel, shakes hands with Dau Van Hung, President of the Vietnam Steel Corp., at a news conference in Hanoi on Tuesday.

NEW DELHI: Tata Steel, the world's sixth-largest and Asia's first integrated steel producer in the private sector, on Tuesday inked a memorandum of understanding (MoU) with Vietnam Steel Corporation (VSC) for setting up a 4.5-million tonne steel plant complex in Ha Tinh province in Vietnam with raw material linkages.

The MoU, according to a Tata Steel statement here, was signed in Hanoi by Tata Steel Managing Director B. Muthuraman and the President of Vietnam Steel Corporation, Dau Van Hung, in the presence of representatives of the Vietnamese Government and senior officials of the two joint venture partner companies.

To pick up 65 p.c. stake

As per the MoU, Tata Steel is to undertake a feasibility study for the steel complex in cooperation with VSC. On successful completion of the study and financial closure, Tata Steel is slated to pick up a minimum equity stake of 65 per cent in the project, while VSC, Vietnam's largest steel producer, is to account for the balance 35 per cent. The plant is proposed to be set up over a period of ten years.

In addition, Tata Steel will have a 30 per cent stake in Thach Khe Iron Ore Joint Stock Company which is to undertake mining activities in the Thach Khe mine.

Already, Tata Steel has a joint venture in rolling mills with VSC through NatSteel Asia, its Singapore-based subsidiary. With a view to strengthening this relationship, the Indian steel producer has decided to join hands with VSC for establishing a steel complex that is expected to take the growth of Vietnam's steel industry to higher levels.

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