25 October 2012

Sumitomo establishes JV to manufacture and sell steel construction materials in Vietnam

25 October 2012 - Nippon Steel & Sumikin Metal Products Co., Ltd., Sumitomo Corporation, Sumisho Tekko Hanbai Co., Ltd., and Kyoei Steel Ltd., in a collaborative effort with Bacviet Steel Joint Stock Company (BVS), which processes, sells, and distributes steel products in Vietnam, established Nippon Steel & Sumikin Metal Products Vietnam Co., Ltd., a joint venture with the objective of manufacturing and selling steel products for architecture and civil engineering in the region.

In Vietnam, construction investment is still strong and large-scale urban development, which is accompanied by the construction of shopping centers and high-rise buildings, and infrastructure development, which includes sewer systems, subways, and highways, is expected to make certain progress going forward. In an effort to secure this demand both quickly and adeptly, the four aforementioned Japanese companies and BVS embarked on the establishment of Nippon Steel & Sumikin Metal Products Vietnam as a steel building materials manufacturing and sales joint venture. The investment for this joint venture was recently approved by the provincial government of Bac Ninh. 

Nippon Steel & Sumikin Metal Products Vietnam will commence operations by acquiring the structural steel pipe manufacturing business of the BVS group. In addition to plans to expand the domain of its core operations going forward, the company aims to introduce processed steel products for architecture and civil engineering that satisfy the needs of the region's market and also the markets in neighboring countries. 

Nippon Steel & Sumikin Metal Products Vietnam Co., Ltd., headquartered in Que Vo, Bac Ninh Province, will have a capital of approximately US$258 million. The shareholder ratio will be Nippon Steel & Sumikin Metal Products Co., Ltd. 48%, Sumitomo Corporation 22%, Sumisho Tekko Hanbai Co., Ltd. 3%, Kyoei Steel Ltd. 3% and Bacviet Steel Joint Stock Company 24%. The joint venture will have approximately 50 employees. 

Source: Sumitomo Corporation