Tatas to set up $5b plant in Vietnam

Steel major Tata steel signed a joint venture agreement with Vietnam Steel Corp, Vietnam's largest steel company, and Vietnam Cement Industries Corp to set up a steel plant in Vietnam.The integrated steel plant, with an annual capacity of 4.5 million tonne, will be built in three phases at an estimated cost of $5 billion. The first phase of the plant envisages setting up a cold rolling mill, to be commissioned by 2010-end. Tata Steel will hold 65% stake, with Vietnam Steel holding 30% and Vietnam Cement owning 5%. The memorandum of understanding was signed on May 29, 2007. The definitive agreements were signed on Wednesday after completion of detailed feasibility studies."We are excited to be a part of this landmark project that is slated to bring sustainable and long-term value to our companies and customers, and accelerate the development of Vietnam," Tata Steel MD B Muthuraman said in a statement. Added Vietnam Steel president Dau Van Hung, "In Tata Steel, we have a strong partner to help us exploit the opportunities within our country, and make the most of our market potential."