Kyoei Steel announced on Wednesday the firm launches new steel business in northern Vietnam with local partner in March. The firm launches new joint venture, Kyoei Steel Vietnam (KSVC) to succeed business of local concrete reinforcing steel bar maker, Tam Diep Rolling Mill Company located in Ninh Binh. The joint venture starts new line from steel making to rolling in 2014. Kyoei Steel tries to cover Vietnamese rebar market through the new joint venture and existing southern Vietnam based Vina Kyoei Steel (VKS).
Kyoei Steel established KSVC with US$ 48 million of capital in September 2011. Kyoei Steel decided to invest the business to follow potential demand growth in northern Vietnam. The joint venture starts the business with existing rolling mill with annual 300,000 tonnes of output capacity in March. The joint venture starts construction of the new capacity with 500,000 tonnes of steel making and rolling capacity to complete in 2014. Kyoei Steel controls 70% of the joint venture through Kyoei Steel Singapore while the partner of Dang Le Hoa, who is owner of Tam Diep Rolling Mill, has 30% share in the joint venture. Kyoei Steel has rebar rolling mill of VKS to supply annual 400,000-450,000 tonnes of rebar mainly for southern Vietnam. Kyoei Steel decided to build steel making shop and new rolling line starting the work in this year.