CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Chinese steelmaker HBIS expands capacity in Vietnam
Hai Yen 13:37, 2019/01/29
The Chinese steelmaker has significant ambition for Southeast Asia.
China’s second largest steelmaker, Hebei Iron and Steel Group (HBIS), is reportedly to buy controlling stakes in NatSteel Holdings and Tata Steel (Thailand) from Indian Tata Steel for US$327 million, as it plans to expand capacity in Southeast Asia, including Vietnam, Nikkei reported.
 
Illustrative photo.
Illustrative photo.
Under the Indian deal, HBIS will hold a 70% stake in a newly created entity and a Tata Steel subsidiary will own the rest. In the process, Tata Steel will divest its entire 100% equity stake in NatSteel and 67.9% of Tata Steel Thailand.

Tata Steel Chief Financial Officer Koushik Chatterjee told Nikkei the enterprise value of the new entity will be around US$685 million.

The deal will give HBIS access to Singapore, Thailand and Vietnam. NatSteel has a production capacity of 2 million tons per year and claims to be the largest single downstream rebar fabrication operation in the world. Tata Steel Thailand has an annual capacity of 1.7 million tons.

HBIS has significant ambition for Southeast Asia and wanted to leverage Tata Steel’s footprint in the region, said Tata Steel CEO and Managing Director T.V Narendran in an interview with Nikkei. 
​
The deal marks the reversal of decades of expansion by the Indian company as it now focuses on the growing domestic market. "In Europe and Southeast Asia, the entities can focus on its own and parent can focus capital on growing India business," Narendran was quoted as saying. 

In the quarter ended in September, the revenues of Tata Steel's Southeast Asia operations rose by 22% year-on-year to US$416.24 million, primarily due to improved deliveries at NatSteel and better realizations at both NatSteel and Tata Steel Thailand. Operating income for the Southeast Asia business was steady at US$15.72 million in the quarter.
Comments
Other news
15:17, 2024/11/04
Hiring multitaskers: Priority for Hanoi companies
Several sectors experience increased hiring demand in the remaining months of 2024
18:17, 2024/11/03
Hanoi seeks partnerships to build skilled workforce for digital transformation
Vocational training institutions play important roles in developing a quality workforce prepared for large companies.
18:35, 2024/10/30
Hanoi to host Vietnam-Asia Smart City Summit 2024
The summit aims to share best practices and promote cooperation among Vietnam's provinces and cities in building and developing smart cities.
15:53, 2024/10/29
Vietnamese spend $8.9 billion on ecommerce
The total transaction volume in the Jan-Sep period increased by 37.7% compared to the same period last year.
14:48, 2024/10/29
Hanoi steps up inspections to crack down on unsafe food
The purpose of the survey is to gain a thorough understanding of the local food safety situation and to identify non-compliance promptly, allowing for corrective actions to be taken to mitigate health risks.
22:24, 2024/10/23
SEMIEXPO Vietnam 2024 to foster growth of semiconductor industry
The exhibition aims to develop the ancillary industry ecosystem and attract investment from the world's leading semiconductor companies.