Indian steel conglomerate Tata Steel on Tuesday signed an agreement with Vietnam Steel Corporation (VSC) to set up a 4.5 million tonne per year plant in Vietnam's Ha Tinh province.
The agreement was signed in Hanoi between Tata Steel Managing Director B Muthuraman and VSC President Dau Van Hung, a statement said.
The steel plant would be built over a period of 10 years with the objective of strengthening Vietnam's steel industry. The project would also aim at optimum utilisation of local resources, employment creation, technology development and earnings of foreign exchange.
In the new joint venture, Tata Steel would own a majority stake of 65 per cent while VSC would hold the remaining 35 per cent.
Tata Steel would also have a stake of 30 per cent in the Thach Khe Iron Ore Joint Stock Company, which would undertake mining in the Thach Khe iron ore mine, the statement said.
Tata Steel, the world's sixth largest steel conglomerate, already has a joint-venture partnership with VSC in rolling mills through its Singapore based subsidiary NatSteel.