Malaysian Steel Company to Invest in US$9.8 Billion Steel Mill Venture
Sept. 24 – Vietnam has approved the joint venture deal between Malaysia’s Lion Industries and Vietnam’s shipbuilding group, Vinashin, for a US$9.8 billion steel mill.
The steel mill will be located in the south-central province of Ninh Thuan with an annual capacity of 14.42 million tons.
According to a statement from Ninh Thuan’s People’s Committee, construction should begin by next year and be completed in 2025. The first phase of the project will cost about US$2.75 billion.
The details of the deal, like how much each company would invest, still has not been released.
Last June, Vinashin backed out on plans invest in steel venture with South Korea’s POSCO saying that it wanted to focus on its shipbuilding business. Vinashin will use the steel for its shipyards around the country.
One analyst thought some of the steel from the Lion Industries venture could go into the export market.
The government has also approved investments by foreign steel makers worth at least US$17.3 billion. This includes a US$7.8 billion project by Taiwan’s Formosa Heavy Industries and a US$5 billion venture by India’s Tata Steel.