The Formosa group of Taiwan (China) is expected to seal an investment deal with the Japanese-based JFE Steel Corporation in August to jointly carry out its steel complex in central Ha Tinh province’s Vung Ang Economic Zone.

Under the deal, the Japanese firm will contribute 30 billion yen (around 242 million USD) to the project, equivalent to 5 percent of the total investment. It will also help with techniques in processing semi-finished products.

As a stakeholder, JFE will secure the supply of steel products for other Japanese enterprises investing in the Southeast Asian market.

JFE revealed its intention to export the products made in Vietnam to replace those currently produced in Japan. The firm will focus on construction steel bars first with steel panels for the automobile industry down the road.

JEF calculated that benefits from the project could be generated in the midterm and is considering further investments in the second phase of the project.

The first phase of construction of the Formosa steel complex, worth almost 10 billion USD, is scheduled to be operational in 2016 with an annual productivity of 7 million tonnes of steel products.

Formosa plans to invest an additional 10 billion USD in the project in the second phase and increase its capacity to 20 million tonnes.-VNA