September 08, 2008

Chun Yuan announces investments on steel mill in Vietnam

CENS reported that Chun Yuan Steel Co one of Taiwan’s leading manufacturers of steel plates, has resolved to invest USD 11.48 million to tap the Vietnamese market by joining a massive investment project jointly launched by China Steel Corporation and Sumitomo Metal Industries of Japan at the end of last year.

Chun Yuan in a statement said the investment in Vietnam is designed to help the firm secure stable supply of upstream raw materials and tap the ASEAN market in the years to come.

At the end of last year, CSC resolved to cooperate with Sumitomo to set up a joint venture steel mill for turning out cold rolled and hot dip galvanized steel coils. With a total investment of USD 1.15 billion, the proposed steel mill is designed to have an annual production capacity of 1.7 million tonnes of steel products. Where CSC will hold a 25% stake in the new joint venture with the remainder going to Sumitomo and other partners. The plant is expected to launch mass production in 2011.

Chun Yuan said that it currently purchase raw materials from CSC and has become one of CSC’s top five customers. To maintain close cooperation relationship with CSC, Chun Yuan has decided to take part in the joint venture in Vietnam. In addition, participating in the investment project will help Chun Yuan smooth the way into the ASEAN marketplace in the years to come.