Japanese firm established steel manufacturing joint venture

October 26, 2012 | 11:00

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Four Japanese firms including Nippon Steel & Sumikin Metal Products, Sumitomo Corporation, Sumisho Tekko Hanbai and Kyoei Steel yesterday announced to join a steel manufacturing joint venture with Vietnam’s Bac Viet Steel Joint Stock Company.

The joint venture, named Nippon Steel & Sumikin Metal Products Vietnam, will manufacture and sell steel products for architecture and civil engineering in the region.

Nippon Steel & Sumikin Metal Products Vietnam will commence operations by acquiring the structural steel pipe manufacturing business of the Bac Viet Steel group, according to the announcement jointly released by Japanese firms.

Apart from striving to expand the domain of its core operations, the company aims to introduce processed steel products for architecture and civil engineering that satisfy the needs of the region's market and also the markets in neighbouring countries.

“In Vietnam, construction investment is still strong and large-scale urban development, which is accompanied by the construction of shopping centres and high-rise buildings, and infrastructure development, which includes sewer systems, subways, and highways, is expected to make certain progress going forward,” the firms stated in the announcement.

Nippon Steel & Sumikin Metal Products Vietnam Co., Ltd., headquartered in Bac Ninh province’s Que Vo Industrial Park, will have an investment capital of approximately $258 million. Nippon Steel & Sumikin Metal Products will hold 48 per cent stake, shareholder ratio of Sumitomo Corporation is 22 per cent, Sumisho Tekko Hanbai is 3 per cent, Kyoei Steel is 3 per cent and Bac Viet Steel is 24 per cent.