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JFE Steel to Study Feasibility of Integrated Steelworks in Vietnam

03/28/2012 - JFE Steel Corp. has signed a memorandum of understanding with the E United Group, a Taiwanese corporate group, to study the feasibility of building and operating an integrated steelworks in Vietnam for which JFE Steel would be the majority shareholder.

JFE Steel Corp. has signed a memorandum of understanding with the E United Group, a Taiwanese corporate group engaged in steel production, medical services, education and real estate, to study the feasibility of building and operating an integrated steelworks in Vietnam for which JFE Steel would be the majority shareholder.
 
JFE Steel says it has been considering opportunities to establish a steelworks in Southeastern Asia or India to meet the increasing demand for steel products in emerging countries. Given that the E United Group already has a construction site for a steelworks in the Dung Quat Economic Zone of Vietnam’s Quang Ngai Province, JFE Steel has decided to study this option before considering opportunities in other countries.
 
The study initially will examine the feasibility of building and launching by 2016 a steelworks with an annual capacity of 3.5 million tonnes, consisting mainly of steel sheets. Details such as the specific product mix and necessary plant equipment will be considered during the feasibility study.
 
If, by the end of this year, the study reaches a favorable conclusion, including the feasibility of developing required infrastructure and the availability of incentives, JFE Steel expects to partner with the E United Group to launch a steel-production operation in Vietnam.
 
The E United Group already has established its own steelmaking company in the country, Guang Lian Steel (Vietnam) Co., Ltd., and has obtained an investment license from the Vietnamese government. They are in the process of developing the steelworks site in the Dung Quat Economic Zone.