Kobe Steel Ltd. (5406.TO) has decided to invest about Y93 billion to construct a steel-making plant in Vietnam using advanced steel-making technology, national broadcaster NHK reported Friday.
Japan’s No. 4 steel producer by sales has received approval from the local authorities to build the plant in central Vietnam which will eventually have an annual capacity of 2 million tons.
Kobe’s technology can turn lower-grade iron ore and coal into iron nuggets of the same quality as blast furnace pig iron. Vietnam produces 9 million tons of iron ore annually, but the country relies on steel imports because of the raw material’s low grade.