JFE Steel Corporation has signed a contract to pay USD 225M in order to acquire a 5% stake in Formosa Ha Tinh Steel Corporation (FHS), a joint-venture company which is currently constructing integrated steelworks in Vietnam. The project is spearheaded by FHS’s founder, Formosa Plastics Group (FPG), a Taiwanese integrated supplier of petrochemicals. JFE Steel will also be providing the project with technical support.
Under the JFE Group’s 5th medium-term business plan, JFE Steel aims to increase its annual steel sales to 40M tons. The company’s investment in FHS is one of its first major steps towards achieving this target.
JFE Steel plans to work with FHS to get the new integrated steelworks operating stably as soon as possible. Going forward, JFE Steel will expand JFE’s business network by selling the products made at FHS to their customers. Some of its planned facilities include a coke oven, two blast furnaces, sintering facility and electricity generator.
