Vina Kyoei Steel of Vietnam to Construct Integrated Production Line

Vina Kyoei Steel (VKS), a steel rolling joint venture in Vietnam mainly operated by Kyoei Steel and Vietnam Steel Corporation, will construct a steel making and rolling line to start the operation in 2013. VKS acquired the final investment approval from Vietnamese government on October 26. Construction works will be ordered within this year earliest. VKS plans to introduce an electric furnace, a continuous billet casting machine and a rolling line with approximately US$ 200 million of capex. VKS’ output capacity for rolled steel products will increase by 500,000 tonnes per year and reach annual 900,000 tonnes including new item lineup of small-size shape steels.

Kyoei Steel’s affiliate, VKS produces concrete reinforcing steel bar and steel wire rod to follow the demand growth for steel products in Vietnam. VKS achieved annual production at approximately 420,000 tonnes in 2010. The existent plant only has a rolling line and purchases billet from Kyoei Steel and other offshore suppliers. Kyoei Steel decided to construct an integrated line to raise product quality and competitiveness.

VKS’ existent plant is on a 17-hectare site inside Phu My 1 Industrial Park in Ba Ria-Vung Tau, Vietnam. The new line will be constructed on a space of the site, including a 90-tonne AC electric furnace, a four-strand continuous billet casting line which can produce billet with 6 meters length and 130-150 millimeters of square side, and a rolling line.