Millcon is planning to set up a JV in Vietnam following a project in Myanmar. (Photo: tggs.kmutnb.ac.th)
Stock Exchange of Thailand (SET)-listed Millcon Steel Plc is looking to form a joint venture (JV) with a Vietnamese firm to tap fast-growing demand in the local construction industry, Bangkok Post reported.
Millcon will hold a 49% stake in the joint venture while the Vietnamese partner will take the rest, said Thanee Loketkravee, vice-president overseeing sales and marketing, adding the venture will not only produce steel but also provide factory design services.
The joint venture will build a plant at a cost of 100 million baht ($2.8 million) in Giang Dien Industrial Park in Ho Chi Minh City
. Its annual capacity is estimated at 36,000 tons.
The first phase of the project is set to start in the second quarter of this year and the plant is scheduled for operation in early 2017.
The joint venture in Vietnam will be the company’s second project abroad, following its 100 million baht project to build a steel plant in Myanmar.