Source: S&P Global
Vietnam-based Posco SS Vina, a maker of long steel products, has sold its rebar production line to focus on its steel sections business, a source close the company said Wednesday.
The Vietnam-based company's steel plant at Ba Ria Vung Tau, has a production capacity of 1 million mt/year, comprising steel sections and rebar.
"Posco SS Vina has sold off its rerolling facilities for rebar making, and going forward, Posco Yamato SS Vina will focus on the other (remaining) production line, which does section products like H-Beams," a source close to the company said.
On December 13, Japan's Yamato Kogyo Group said it bought a 49% stake in Posco SS Vina for about $100 million, reiterating that Posco SS Vina had withdrawn from the rebar market.
With the stake purchase, Posco SS Vina will be renamed Posco Yamato Vina Joint Stock Co. Previously, the company was wholly owned by Posco Specialty Steel, whose majority shareholder is Posco of South Korea.
"Any additional production from the melting capacity could then also be used for billet production. However, that is dependent on market demand," the source said.
Yamato Kogyo said the purchase will be concluded upon obtaining approval from relevant authorities.
The Japanese steelmaker expects demand for structural steel to grow in Vietnam and Southeast Asia amid a construction boom in the region. Yamato owns Yamato Steel Co., which makes and sells rolled steel products in Japan and overseas.
Vietnam's construction sector is projected to grow by 8%-9% annually over 2019 to 2023, data from the South East Asia Iron & Steel Institute, or SEAISI, showed.