September 08, 2008

TATA to decide on steel plant in Vietnam after study

It is reported that TATA Group would take a final decision on building a 4.5 million tonne steel plant in central Vietnam after the ongoing feasibility study to ascertain its technical, commercial and environmental viability.

The report cited Mr Alan Rosling ED of TATA Sons as saying that "Of course, we have done some preliminary research which leads us to believe the project would be viable. However, we still need to look at the technical, commercial and environmental feasibility before we can say yes to the project. It will take some months before we have the detailed numbers and then additional months until we put them all together and have a look at the total viability of the project."

Mr Rosling added that "This is a challenging and complicated project, but we believe it is very exciting and the partnership we have developed with Vietnam Steel Corporation is very encouraging."

Vietnam Steel Corporation had signed a MoU with TATA Steel to build a 4.5 million tonnes plant worth about USD 3.5 billion in May 2007. On the successful completion of the study and financial closure, TATA Steel will have a stake of minimum 65% and Vietnam Steel Corporation will have 35% in the JV. TATA Steel will also have 30% stake in Thach Khe Iron Ore Joint Stock Company which would undertake mining in the Thach Khe iron ore mine.