Core Tip: JFE Steel Company in Japan will begin exploring the feasibility of building a steel plant in Vietnam and plans to complete the feasibility study by the end of 2012.
JFE is planning to establish its first overseas steel plant in Vietnam. JFE Steel Company in Japan will begin exploring the feasibility of building a steel plant in Vietnam and plans to complete the feasibility study by the end of 2012. If the result is optimistic, JFE will participate in the steel joint project led by Taiwan, China steel giant E-United, and hold a majority stake. The project is planned to start construction in 2013, with the first phase consisting of a blast furnace with an annual production capacity of 3.5 million tons and a hot rolling mill with an annual production capacity of 2.5 million tons. It will be put into operation in 2016.

The outlook for steel demand in emerging market countries such as Vietnam is optimistic, and JFE has been preparing to establish steel joint ventures in Southeast Asia or India. JFE will not only consider meeting Vietnam's demand, but also export its products to neighboring countries.
 
Baosteel will invest 86 million US dollars to build a factory in Vietnam. China Baosteel Co., Ltd. will officially start investing in the construction project of VSIP II factory in Vietnam. The total investment of the project is 86 million US dollars, producing 330ml and 500ml aluminum bottles to meet Vietnam's domestic demand and export. It is expected that the project will achieve an annual production capacity of 700 million after completion. This is also Baosteel Group's first investment overseas. In addition, Baosteel has made significant progress in the seamless pipe project in Thailand. The seamless pipe cooperation project has been approved by the National Development and Reform Commission and has entered the construction preparation stage, but Baosteel has not disclosed specific project details such as production capacity, investment scale, partners, and construction plans.

It is reported that Wuxi Simles Holdings has also started construction of an annual production capacity of 200000 tons of petroleum steel pipe plant in Thailand, which will mainly export its products to markets in North and South America.

Sinosteel Taiwan, China will build 10 processing centers in Southeast Asia. Sinosteel, a leader in Taiwan, China's steel industry, said it would set up 10 steel processing centers in Southeast Asia in the next five years, with an investment of NT $1.5-2 billion. The new plant will be set up in Thailand, Chinese Mainland, Indonesia, Malaysia and Vietnam. China Steel has decided to increase its capital of NTD 9.15 billion in its Australian subsidiary to invest in and develop raw material resources, in order to improve the company's self-sufficiency in raw materials and reduce procurement costs. The company's acquisition of mining rights in Australia in the first half of this year is expected to increase.
     
Kobe Steel invests in a steel pipe factory in India. Kobe Steel Corporation of Japan and Man Industries of India have signed a memorandum of understanding, planning to invest 300 million rupees (approximately 6 million US dollars) to jointly develop steel pipe products. This is the first cooperation between a Japanese coil manufacturer and an Indian steel pipe manufacturer, and Kobe Steel and Man Industries will explore deeper cooperation in the future. Man Industries is a subsidiary of Man Group, mainly producing spiral welded pipes and submerged arc welded pipes, and mastering the surface coating technology of steel pipes. It can produce steel pipes for the oil and gas industry, with an annual production capacity of about 1 million tons of submerged arc welded pipes.

The new budget proposal of India's NMDC focuses on steel projects. The National Mining Development Corporation (NMDC) of India plans to invest 46.55 billion rupees in the construction of steel and iron ore projects in the next fiscal year, of which over 75% will be invested in steel mills in Chhattisgarh. This steel mill is located in Nagarnar region of Chhattisgarh state, with an annual production capacity of about 3 million tons. It is planned to start production in 2014 and is an important project for NMDC to officially enter the steel industry. NMDC plans to invest a total of 155 billion rupees in the project, with all funds coming from NMDC. In the initial stage of production, Nagarnar plant will mainly focus on producing hot-rolled coils, and gradually expand to cold-rolled steel and other steel varieties in the future. The iron ore used for production comes from NMDC's iron ore mine in Bailadila, and coking coal relies on imports.