Japan’s steel making company Yamato Kogyo Group has announced that it has signed a contract with South Korea’s POSCO to improve the business structure of Vietnam SS VINA as a strategic investor.
With this agreement, Yamato Kogyo acquires 49% of the total stake in SS VINA whereas POSCO owns the remaining 51%. After the official acquisition, the company name will be “Posco Yamato Vina Steel”.
SS VINA is a production and sales corporation with a total annual production capacity of 1 MnT of steel and 500,00 MT of rebar, located in Phu MY Industrial Park, Vung Tau Province, Vietnam.
It started its operation in 2015, but has been struggling to secure profitability due to oversupply caused by the capacity expansion of rebar companies in Vietnam and overheating competition among companies.
~ Inputs from Steel Daily
Leave a Reply