Posco has completed construction of what it claims is the largest cold-rolled steel sheet factory of Southeast Asia in Vietnam.
Posco will receive hot-rolled steel materials necessary for the factory from Pohang and Gwangyang Steelworks as well as Nippon Steel Corp. The cold-rolled steel products manufactured there will be provided to the whole Southeast Asia region through steel processing centers in Vietnam, Thailand, Malaysia, Indonesia, and the Philippines.
Posco opened the factory, which has an annual production scale of 1.2 million tonnes, in the Pumi Industrial Complex of Vung Tau Province, near Ho Chi Minh, with approximately 500 personnel including Chairman Joon-yang Chung, Minister Vu Huy Hoang of the Ministry of Industry and Trade, and Consul General Sang-yun Kim.
“This is the largest factory by scale in Southeast Asia and will contribute greatly to the steel industry as well as the development of related industries,” said Hoang.
Construction of the factory started in August 2007, taking 26 months to complete with total investments of about USD 528 million. Posco plans to manufacture 700,000 tonnes per year of cold-rolled products to be used for automobiles and motorcycles, and 500,000 tons per year of cold-rolled strip full hards used for high-quality building materials.
Once Posco completes a 3-million-tonne scale hot-rolled factory and 40,000-tonne scale Continuous Galvanizing Line factory after 2012, it claims it will have Vietnam’s largest downstream steel manufacturing facilities, and expects to lead the region’s high-quality steel material market.