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Posco Completes Construction of Stainless Cold Mill in Vietnam

03/13/2012 - Posco recently completed the construction of an annual 150,000-tonne scale stainless cold-rolled factory within the Nhon Trach Industrial Complex located near Ho Chi Minh. Posco plans to install an additional rolling machine by 2015 to increase annual production to 285,000 tonnes.

Posco recently completed the construction of an annual 150,000-tonne scale stainless cold-rolled factory within the Nhon Trach Industrial Complex located near Ho Chi Minh at Posco VST, the company’s Vietnam subsidiary.
The factory was completed in 13 months after construction started in December 2010. With its completion, the annual production scale of Posco VST increases to an annual 235,000 tonnes.
CEO Chung Joonyang, Deputy Minister Le Duong Quang of Vietnam’s Ministry of Industrial Trade, Vice Chairwoman Phan Thi My Thanh of Dongnai Province, Korea Ambassador Ha Chanho to Vietnam, and 120 related personnel of both countries attended the completion ceremony.
Posco acquired ASC, an annual 30,000-tonne scale stainless steel cold-rolled factory in Vietnam, in October 2009 and launched Posco VST, manufacturing 850,000 tonnes of cold-rolled products annually through facility expansion. The company decided to expand new production facilities based on projections that stainless cold-rolled product demands will increase in the country from the current 250,000 tonnes to 330,000 tonnes in 2015.
Posco plans to install an additional rolling machine by 2015 to increase annual production to 285,000 tonnes. Once completed, Posco VST claims it will become Southeast Asia’s largest stainless cold-rolled product manufacturer alongside Thailand’s Posco Thainox, which officially launched in December last year.
Stainless cold-rolled product demand in the Southeast Asia region is forecasted to increase at an average annual rate of 8%, according to Posco, from 750,000 tonnes in 2012 to 950,000 tonnes in 2015.
When its stainless steel cold-rolled factory in Turkey is completed next year, Posco says its product ratio of cold-rolled products will expand from the current 60% to 73%.
Posco and investing companies first started in Vietnam through the establishment of POSVINA, a plating and colored steel sheet manufacturer, and has been carrying out business in the country for 20 years.
In October 2009, an annual 1.2 million-tonne cold-rolled steel plate factory Posco Vietnam was completed in the Vunt Tau Province Phu My Industrial Complex. Posco Specialty Steel plans to start construction of a 1 million-tonne electric furnace and steelmaking factory within the same complex this July.