August 22, 2008

Vinashin & Songsan jointly to build steel mill in Vietnam

It is reported that the Songsan Vinashin Ltd Company, a JV of Vietnam Shipbuilding Industry Group and Songsan CNI Ltd Company of South Korea will jointly to set up a USD 41 million JV producing steel for shipbuilding in Vietnam. The facility would produce steel structures for shipbuilding yards and replacing imported products in Vietnams shipbuilding sector.

The factory locating at the Vinashin Shinec Shipbuilding Industrial Park in Hai Phong will start to build in October and to operate in December 2009 with 102,720 tons of steel capacity a year.

Vinashin will take 51% share and Songsan will take the rest share. With the JV the two companies have already together in process to build a first USD 35 million factory in the neighboring Hai Duong province and it is scheduled to operate in the second quarter of 2008.