POSCO Considers to Triple Vietnamese Stainless Cold Rolling Mill Capacity

POSCO of South Korea started a discussion to expand the production capacity of stainless cold rolling mill in Vietnam by over 3 times to 300,000 tonnes per year. Feasibility study is conducted to introduce 2 cold rolling mills of the capacity at 100,000 tonnes per year. The firm will decide the investment in mid 2010.

Vietnamese mill presently produces bright annealing stainless sheet while plans to start supply of common grade products such as 2B. POSCO plans the capacity expansion when demand of stainless cold rolled sheet is increasing in Vietnam and surrounding countries. Another background is that acquisition of Thainox, a large stainless steel maker in Thailand, is delayed.

POSCO acquired Asian Stainless Corporation in 2009, the corporate name of which was changed to POSCO Vietnam Stainless. The expansion work of POSCO Vietnam Stainless has completed this year to 85,000 tonnes per year from previous 30,000 tonnes.

POSCO has production capacity of stainless crude steel and hot rolling at total 2.8 million tonnes per year in Pohang Iron Works and Chinese subsidiary. The cold rolling capacity is 750,000 tonnes per year in South Korea and 625,000 tonnes in China and Vietnam.