Bangalore: Tata Steel, India’s largest steelmaker, said on 29 May it will take a minimum 65% stake in a Vietnamese steel plant joint venture estimated at $3.5 billion (Rs14,182 crore).
Vietnam Steel will hold the balance of the proposed complex in Ha Tinh province that will have an annual capacity to manufacture 4.5 million tonne of steel, Tata said in a statement.
A preliminary agreement to set up the plant was signed on 29 May in Hanoi by Vietnam Steel President Dau Van Hung and Tata Steel managing irector B. Muthuraman.
“This project will take the growth of the steel industry of Vietnam to a higher trajectory,” the statement said. “The project will bring in significant economic impact in terms of optimisation of local resources, creation of employment, development of technology and earnings of foreign exchange.”
Vietnam, with annual economic growth of 8%, is on the threshold of an increase in steel use for buildings, machinery and other infrastructure projects, the statement said. The complex will use raw materials from the Thach Khe iron mine, in which Tata will hold a 30% stake.
Tata Steel is the flagship of Tata Group, the largest business conglomerate in India with interests in steel, automobiles, telecommunications, information technology, energy and hotels.