Sumitomo Metal Industries and Taiwanese largest steel maker, China Steel (CSC) announced on Friday they started construction of a new steel sheet mill, China Steel Sumikin Vietnam Joint Stock (CSVC), in Vietnam. This is the first mill established from green field for both companies to manufacture high grade steel sheet at overseas. The new mill will complete at the end of 2012 and start operation in early 2013 as planned. The production capacity is projected at 1.6 million tonnes per year, which will become the largest steel sheet plant in Vietnam and has the first galvanizing alloying line in ASEAN.
Mr.Hiroshi Tomono, the president of Sumitomo Metals, expressed he hopes the company members in Vietnam, Taiwan and Japan cooperate and originate new operative spirit and culture as well as the new steel sheet mill contributes to development in Vietnam. Mr.Tsou Jo-Chi, CEO of CSC, said the new steel mill could help local economic growth by supply of high quality steel sheet and become the lighthouse for automobile and electric appliance market in Southeast Asia. The mill is constructed inside an industrial estate, Ba Ria Vung, Tau province, South Vietnam. Sumitomo Metals and CSC started the foundation work in late May while required a time to acquire an additional ground. Sumitomo Metals started operation of a seamless steel tube steel plant with blast furnaces worked by charcoal on September 1. In Thailand, the firm has invested in construction of a new plate mill. The firm has activated overseas investment and advanced correspondence for growing markets.