Vietnam Steel Corp (VNSteel) has decided to transfer 19.5 percent out of 84 percent of shares that the corporation has owned in Southern Steel Sheet Joint Stock Co to Industrielle Betelligung SA, under Italy-based Danieli Steel Group.
Previously, the Southern Steel Sheet Joint Stock Co was established with the purposes of supplying the market the hot-scrolled steel products. The steel mill is located in Phu My 1 Industrial Park, Tan Thanh Dist, Ba Ria-Vung Tau province with designed capacity of 2 million tonnes per year and investment capital of about $550 million. The main shareholders of the company included VNSteel, Vietnam Rubber Industry Group (15 percent) and Da Nang Steel Joint Stock Co (1 percent).
In May 2009, VNSteel had purchased holdings of India-based Essar Group in this project when the investor withdrew from this project due to bad effects from global economic recession.
As planned, the construction works on the steel mill is supposed to be started in late 2010 and put into operation in 2013.
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