Posco opens stainless steel mill in Dong Nai
By Dinh Dung - The Saigon Times Daily
HCMC – After over a year of construction, South Korean-based Posco Group on Wednesday opened a stainless steel mill with annual output of 150,000 tons at Nhon Trach 1 Industrial Zone in Dong Nai Province.
|Stainless steel produced at Posco VST plant in Nhon Trach 1 Industrial Zone in Dong Nai Province - Photo: Dinh Dung|
The group has invested US$130 million in the new plant, producing 2B cold-rolled steel, the most popular stainless steel, and current products. The mill, under management of Posco VST Co. Ltd., will help raise total output from 85,000 to 235,000 tons yearly.
Chung Joon Yang, chairman of Posco Group, said products would be supplied for local demand and exported to Southeast Asia and other markets.
Chung also expected a positive improvement in the stainless steel market in Vietnam. The iron and steel industry is estimated to reach an average growth rate of 8% until 2020 due to higher demands of foreign automobile and home appliance manufacturers.
Posco Group is developing many projects in Vietnam and established Posvina, a color and galvanized steel company, 20 years ago. The projects include a section of HCMC-Dau Giay expressway and An Khanh new urban area in Hanoi.
In 2009, the group launched Posco Vietnam cold-rolled steel mill with an annual capacity of 1.2 million tons into operation at Phu My Industrial Zone in Ba Ria-Vung Tau Province.
Meanwhile, Posco Specialty Steel Co. has plans to build a one-million-ton steel mill at the zone in July. The project is expected to be completed in 2014.