Essar Steel to invest $527 mn in steel plant JV with Vietnamese PSUs

The Times of India reports that Essar Steel is forming a JV with two government-run Vietnamese companies for setting up a 2 mn tonne-steel plant in southern Vietnam at a cost of $527 mn (about Rs. 2371.5 crores). The company, through its Singapore subsidiary Essar Steel Vietnam Holdings Private Limited (ESVHL), has signed an agreement with Vietnam Steel Corporation (VSC) and Vietnam General Rubber Corporation (GERUCO) to set up the plant in the Phu My Industrial Zone in southern Vietnam. The project is expected to be completed in 30 months. ESVHL would hold 65%stake, while VSC and GERUCO would hold 20% and 15% equity. Vietnam’s steel consumption is expected to rise from 6 mn tonnes at present to 10 mn tonnes by 2012.