Vina Kyoei Steel of Vietnam Plans 8% Output Growth in 2010

Vina Kyoei Steel, a steel rolling joint venture in Vietnam mainly operated by Kyoei Steel and Vietnam Steel Corporation, plans to increase the annual production by 7.9% to 410,000 tonnes and the annual sales by 4.8% to 410,000 tonnes in 2010 from 2009. Steel demand is strong from the construction market in Vietnam. Vina Kyoei Steel has increased the employees by 19 to 231 for the operation shift up since January 2010.

Vina Kyoei Steel produces concrete reinforcing steel bar, steel bar and wire rod at the rolling mill located in Phu My I Industrial Zone, South Vietnam. The rolling mill is approximately 2,000 square meters on the land of 17 hectares with a heating furnace and a rolling machine.

Vietnam’s nominal GDP was about 12% and the real GDP was 5.3% in 2009. The country keeps the high economic growth thanks to the relatively little impact by the world economy recession and the governmental economy stimulation measures. The demand for rebar and steel products is increasing for active constructions of infrastructures, buildings, condominiums and factories.

Under the circumstances, Vina Kyoei Steel’s production increased by 26.2% to 380,000 tonnes and the sales expanded by 35.7% to 391,000 tonnes in 2009 from 2008. Both the production and the sales hit the record high.