Sumitomo Metals Establishes Steel Sheet Works with CSC in Vietnam

Sumitomo Metal Industries announced on Friday the firm concluded a contract with China Steel (CSC), Taiwanese largest steel maker, to establish a joint company manufacturing steel sheet in Vietnam. Sumitomo Metals has examined a JV establishment since the end of 2007 to follow expanding sheet steel demand in Asia along the firm’s strategy. The JV will produce cold-rolled, zinc coated or magnetic steel sheet at 1.6 million tonnes per year starting operation at the beginning of 2012.The JV is named China Steel Sumikin Vietnam Joint Stock Company (CSVC). Both makers will invest total 1.15 billion dollars for CSVC. Capital participants are 51% of China Steel, 30% of Sumitomo Metals, 5% of Sumitomo Corporation, 10% of Feng Hsin Iron & Steel, Taiwanese electric furnace maker, and 4% of other Taiwanese makers. CSVC’s plant will be constructed in My Xuan A2 Industrial Zone, 60km southeast of Ho Chi Minh City.CSVC is planned to hold pickling equipment and cold-rolling mill, continuous annealing line, hot-dip zinc coated line, magnetic steel sheet production line or shearing line, to produce hot-rolled cut sheet, pickled steel sheet, cold-rolled steel sheet, magnetic steel sheet, and zinc coated steel sheet for automobiles or electric appliances or building materials. Sumitomo Metals and CSC will supply hot-rolled coil to CSVC. Sumitomo Metals and CSC already established another JV to operate slab plant in Wakayama iron works of Sumitomo Metals, Japan, and established a joint coil center in Vietnam. Sumitomo Metals extended technology of blast furnace construction to Bhushan Steel in India, which is accelerating overseas operations.