China Steel Corp (CSC), Taiwan’s largest steelmaker, will start its 1.2 million tpy cold rolled coil mill in Vietnam in 2013, its chairman told delegates at the South East Asia Iron and Steel Institute conference on Monday May 28.
“We hope to complete the installation of the mill by the end of the year, and the test run is expected in 2013,” CSC chairman Tsou Jo-Chi said.
Located at the My-Xuan Industrial Zone in Vung-Tau province, the China Steel Sumikin Vietnam joint venture (CSVC) mill is built with a total investment of $1.1 billion.
CSC owns a 51% stake, Sumitomo Metal Industries (SMI) holds 30%, while Formosa Plastic Group owns the remaining 19%.
The joint venture is CSC’s second mill in the region. The steelmaker fully owns and operates CSC Steel, Malaysia’s largest cold rolled coil mill.
At full capacity, CSC Steel is capable of producing 500,000 tpy of cold rolled coil. The mill also has a 240,000 tpy hot-dipped galvanising line and a 120,000 tpy pre-painting line.
Tsou is upbeat about the future growth of steel consumption in the Southeast Asian region.
“Asean as a group of countries has a total gross domestic product of $5 billion. That is a very healthy GDP,” he said.
“GDP will guarantee growth, growth will guarantee consumption, and consumption will guarantee demand for steel.”
Besides building production bases and coil centres, CSC hopes to establish more sales centres and secure raw materials such as iron ore in the Asean region, Tsou said.
Steel consumption in Southeast Asia crossed 50 million tonnes for the first time in 2011, boosted by strong growth in the manufacturing and construction sectors.
Apparent steel consumption in the six main economies in Southeast Asia – Indonesia, Malaysia, Singapore, Vietnam, Thailand, and the Philippines – was 50.5 million tonnes, up 4% compared with 2010.