Nippon Steel & Sumikin Coated Sheet and Marubeni-Itochu Steel announced on Tuesday they established flat steel color coating joint venture in Hanoi of Vietnam. They invest US$ 9 million for the join plant with local sandwich panel maker, Vietrust Technological Investment and Development Joint Stock Company (TONMAT) and local dealer, Thanh Dat Steel Joint Stock Company. Nippon Steel & Sumikin Coated Sheet tries to follow growing demand in northern Vietnam through the first offshore plant.
They established the joint venture, Fujiton Color Coating Steel Joint Stock Company in TONMAT’s plant near Hanoi. Nippon Steel & Sumikin Coated Sheet and Marubeni-Itochu Steel have each 25% share in the joint venture with US$ 8.7 million of capital while TONMAT holds 40% share with 10% share by Thanh Dat Steel. TONMAT’s chairman assumed the top of the joint venture while Nippon Steel & Sumikin Coated Sheet sends vice president and exporters in technology and operation. Nippon Steel & Sumikin Coated Sheet transfers idled continuous color coating line in Amagasaki plant, which stopped operation in 2010, to the joint venture. With the line with 60,000 tonnes of annual output capacity, the joint venture starts operation in June 2012. The plant targets around 30% share in northern Vietnam market with annual 150,000-160,000 tonnes of demand. Nippon Steel & Sumikin Coated Sheet provides the material flat steel and technical support for the joint venture. TONMAT operates the joint venture while Thanh Dat Steel procures flat steel in Vietnam and sells the products for the joint venture. Marubeni-Itochu Steel procures flat steel from Vietnam makers and offshore market for the joint venture along with the marketing. The joint venture supplies the products for TONMAT, which uses monthly 600-700 tonnes of colored flat steel for the panel, and for Thanh Dat Steel, which sells monthly 2,000 tonnes of steel products. The joint venture also develops local market. Nippon Steel & Sumikin Coated Sheet’s president Atsushi Takeda indicates the firm would build Chinese plant if the firm could get suitable local partner while the firm supplies the panel products for Chinese market through commissioning production at local maker. Hanoi based TONMAT has plants in near Hanoi and Da Nang. The firm expands the operation through the quality advantage when Vietnamese government gave quality award to the firm for 3 years in a row. Thanh Dat Steel is a major steel dealer covering northern Vietnam while the firm has long term trading with Marubeni-Itochu Steel.
