Tokyo --- JFE Steel Corporation announced today that it 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 has been considering opportunities to establish a steelworks in Southeastern Asia or India to meet the increasing demand for steel products in emerging countries. Vietnam, which is experiencing steady economic development and stable expansion of its domestic steel demand, is expected to become a supply base for steel products that are in demand both locally and in other countries, mainly in Southeast Asia. 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 tons, 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.
|Yieh Phui Enterprise Co., Ltd. (member of E United Group)|
|Head office:||No. 369 Yuliao Road, Qiaotou District, Kaohsiung, 82544, Taiwan (ROC)|
|Chairman:||I. S. Lin|
|Sales:||NT$ 32.9 billion (2011 estimate)|
|Capital:||NT$ 16 billion (December 31, 2011)|
|Top shareholder:||Yieh United Steel Corporation (YUSCO) 15.48%|
|Business:||Ordinary steel re-roller|
|Main facilities:||Pickling line, cold rolling mill, surface coating line and color coating line|
|Production:||840,000 tons (cold-rolled products in 2011)|
|Yieh United Steel Corporation (YUSCO; member of E United Group)|
|Head office:||No. 600 Xinglong St., Jiaxing, Gangshan Dist., Kaohsiung 82057, Taiwan (ROC)|
|Chairman:||I. S. Lin|
|Sales:||NT$ 75.7 billion (2011 estimate)|
|Capital:||NT$ 22.0 billion (December 31, 2011)|
|Top shareholder:||Yieh Phui Enterprise Co., Ltd. 14.61%|
|Business:||Stainless steel manufacturer|
|Main facilities:||Electric furnace, converter, hot rolling mill, cold rolling mill|
|Production:||600,000 tons (crude steel in 2011)|
|Guang Lian Steel (Vietnam) Co., Ltd. (member of E United Group)|
|Head office:||Dung Quat Economic Zone, Quang Ngai Province, Vietnam|
|Chairman:||Li Pi Hsien|
|Sales:||None (not yet in production)|
|Capital:||579,983 billion VND (December 31, 2011)|
|Top shareholder:||Yieh Phui Enterprise and YUSCO, 93% combined|
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