Essar Group in $527 million steel JV with Vietnam Steel Corporation

By Our Corporate Bureau | 12 Feb 2007

The Essar Group will establish a $527 million joint venture to build a 2 million tonne hot-rolled steel mill, in a three-way joint venture with State-run Vietnam Steel Corporation (VSC) and rubber group Vietnam General Rubber Corporation (Geruco) in which Essar will hold a majority 65 per cent stake.

VSC is Vietnam's largest steel producer and it will hold 20 per cent stake with Geruco holding the remaining 15 per cent.

The mill, due to be completed in 2009, will use billets imported from India. Vietnam relies on the imports of steel and billets, mainly from China.