China Steel buys Sumitomo’s stake in Vietnam joint venture
Taiwan-based China Steel Corp (CSC) will buy Sumitomo Corp’s 5% stake in their joint venture, China Steel Sumikin Vietnam Joint Stock Co (CSVC), a company spokesman confirmed on Thursday August 21.
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Sumitomo has withdrawn from the joint venture due to strategic considerations, CSC said last week.
CSC “will offer to buy it totally” if other initial Taiwanese shareholders of CSVC give up the purchase, the company said at the time.
Sumitomo was among seven initial shareholders of the 1.2 million-tpy cold rolling steel joint-venture company in southern Vietnam.
CSVC, which manufactures steel sheet, has moved into commercial operation following an opening ceremony in October last year, CSC said.
Following the acquisition of Sumitomo’s stake, CSC will hold 56% of CSVC, with Nippon Steel & Sumitomo Metal Corp (NSSMC) owning 30%, Nippon Steel & Sumikin Bussan Corp 5%, and the remaining 9% held by other shareholders.