Japanese Kyoei Steel Company officially became strategic shareholder of Viet Nam-Italy Steel Joint Stock Company (VIS).

The Japanese Kyoei Steel Company purchased 20 per cent stake from Thai Hung Company, VIS’s biggest shareholder. After the VND480 billion (roughly US$21.17 million) transaction, Thai Hung owns 45 per cent stake in VIS.

According to VIS’s management board, the co-operation between Viet Steel, Thai Hung Company and Kyoei Steel will help the company to further develop in the future. In addition, it expected to receive technological support from Kyoei Steel Group to improve its production and business.

VIS was established in 2001 by Song Da Corporation. The corporation later decided to divest all of its 26.1 million shares from VIS.

Thai Hung is a large distributor for many steel manufacturers such as VIS, Viet Nam Steel Corporation, Posco, Pomina and Thai Nguyen Iron and Steel Corporation (TISCO).

Currently, the company holds around 3.6 per cent of market share. It plans to develop new plants to reach a capacity of 850,000 tonnes of steel and 1.1 million tonnes of steel billet.

VIS’s revenue and after-tax profit in 2016 were VND3.7 trillion and VND72 billion respectively. In the first nine months of this year, the company attained VND4.64 trillion in revenue and VND67 billion in after-tax profit.

Established in 1947, Kyoei Group has a charter capital of 18.5 trillion yen and operates in 20 countries across the world.

Currently, Kyoei Steel only focuses on rolling steel in Viet Nam, with steel billets being purchased from other companies.

Kyoei Steel is also involved in the joint venture of Thi Vai International Port in Ba Ria-Vung Tau Province. This $56 million project has been operational since 2014. — VNS