Vina Kyoei Steel of Vietnam to Increase Rebar Output by 7% in 2011

Vina Kyoei Steel, Vietnamese subsidiary of Japanese major rebar maker, Kyoei Steel, plans to increase rebar production by 7% to record 450,000 tonnes in 2011 from 2010. Vina Kyoei Steel extends operation time fully to meet strong domestic demand for rebar. Recently large-scale competitors such as local electric furnace steel makers or offshore companies are increasing in Vietnam. Vina Kyoei Steel aims to improve price competitiveness by scale merit and keep rebar sales share.

In Vietnam, infrastructure works are increasing for roads and bridges. Investment is also active for building constructions. The demand for long steel products increased by 10% in 2010 from 2009 and reached 6 million tonnes. Vina Kyoei Steel renewed speed adjustment machine while raised motor power output power of the rolling mill. The firm raised the operating rate and increased rebar production to 420,000 tonnes in 2010, up by 10,000 tonnes from initial plan and by 30,000 tonnes from 2009.

Rebar demand is expected to increase by about 10% in Vietnam in 2011 from 2010. Vina Kyoei Steel plans to increase the production and maintain the top brand.

POSCO Special Steel plans to construct an electric furnace with capacity of 1 million tonnes per year in Vietnam. POMINA Steel plans to introduce a new 1-million-tonne electric furnace. On the other hand, Chinese and local rebar and wire rod re-rollers recently tend to introduce mini blast furnaces to build up integrated production system.