Japanese steel maker Yamato Kogyo acquires 49% stake in Posco arm in Vietnam
HO CHI MINH CITY, NNA - Japanese steel maker Yamato Kogyo Co. has acquired a 49 percent stake in Vietnamese peer Posco SS Vina Joint Stock Co., a wholly owned subsidiary of South Korean’s Posco, for $100 million to meet growing local construction demand.
The deal will allow Yamato Kogyo to transfer expertise in high-quality steel production and cost reduction to the Vietnamese shape steel maker in a bid to supply the products used for buildings, warehouses, and shopping malls across all industries in Vietnam, a Yamato Kogyo official told NNA on Monday.
Posco’s subsidiary will be renamed to Posco Yamato Vina Steel Joint Stock Co.
The Japanese electric furnace steel maker has no plans to take over the remaining 51 percent stake in Posco’s Vietnamese unit, the official added. He did not provide further information about Yamato Kogyo’s strategy to push into the Vietnamese market.
Posco SS Vina has an annual production capacity of one million tons of semi-finished steel product and 500,000 tons of rolled steel.
The Japanese steel maker also has a foothold in Thailand, Siam Yamato Steel Co., its subsidiary, to supply steel products for the domestic and other Southeast Asian markets