Posco paying $220m to retain control in Vietnamese special steel plant
Posco has announced that it would pay 241.42 billion Won ($218.58 million) for all the shares of Posco SS-Vina, a 1-million-tpy integrated special long steel plant that is close to commissioning in Vietnam.
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Once the transaction is completed in March next year, the South Korean steelmaker will own the Vietnamese company in its entirety, it said in a filing to the Korea Exchange (KRX) on Monday December 15.
Posco SS-Vina is currently a wholly owned unit of Posco Specialty Steel, whose majority shareholder is Posco.
Posco recently agreed to sell its majority stake in Posco Specialty Steel to SeAH Group’s SeAH Besteel, South Korea’s largest special steel producer.
A spokesman for Posco told Steel First previously that Posco SS-Vina was “not included” in the deal with SeAH Besteel.
Posco SS-Vina, located at the Phu My Second Industrial Zone in the south-eastern Vietnamese province of Ba Ria-Vung Tau, will consist of an electric arc furnace and a 1-million-tpy rolling mill that will produce special steel sections, bars and rebar.
Posco said it is retaining the Vietnamese company because it wants to strengthen its construction long steel business.