Posco, Asia’s third-biggest steelmaker, plans to begin construction work for a proposed US$5 billion steel mill in Vietnam before April next year.
The Korean steelmaker will submit the result of its feasibility study to the Vietnamese government in May, Kim Jin Il, executive vice president in charge of the project at the Pohang, South Korea-based company, told reporters Friday.
Posco joins Malaysia’s Lion Group and rivals in building steel plants in Vietnam as the country makes more appliances, machinery and erects more buildings.
Demand could jump to 9 million tons this year from 1 million tons a decade ago, Lion Group said this week.
The proposed Vietnam plant could have an annual production capacity of 4 million metric tons, Kim said.
Posco hopes to win approval from the government in November, he said.
The company last May said it had signed an agreement with Vietnam Shipbuilding Industry Group to examine building a mill in the Southeast Asian nation.
The Korean steelmaker also announced a further delay to the start of construction at its $12 billion steel plant in India to September.
It had planned to start building this month.
Construction of Posco’s Indian mill was agreed with the Orissa state government in June 2005, and originally was meant to start last April.
Delays in securing a mining permit and relocating residents have pushed back work.
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