Taiwan's China Steel said Monday authorities in Vietnam approved its application to set up a joint venture there with Japan's Sumitomo Metal Industries.
In a statement, China Steel said it received approval from the Vietnam government on May 12 to establish the joint venture, to be capitalised at 1.15 billion US dollars with Sumitomo Metal Industries and Taiwanese partners.
China Steel will take a 51 percent stake in the new venture, China Steel Sumikin Vietnam Joint Stock Co, which is expected to produce 1.6 million metric tonnes of cold rolled steel products annually for auto and home appliance use.
While the global economy has been hard hit by financial woes, "the partners of the joint venture will go ahead with the project based on our long term investment strategies," China Steel said in the statement.
The joint venture is aimed at markets in the Association of Southeast Asian Nations (ASEAN) region.
— Dow Jones Newswires contributed to this story —
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