A New Plant for Production of Steel Pipe Piles and Steel Pipe Sheet Piles in Vietnam ―Contributing to Social-Capital Improvements in Asia and Oceania―

Nippon Steel Corporation has decided to construct a new plant in Vietnam for the production of steel pipe piles and steel pipe sheet piles, jointly with Vietnam Steel Corporation, the sole state-owned steel company in Vietnam, and five Japanese trading companies (Metal One Corporation, Sumitomo Corporation, Marubeni-Itochu Steel Inc., Hanwa Co., Ltd. and Nippon Steel Trading Co., Ltd.), and has obtained an investment license for such project from the authority (BIZA: Ba Ria-Vung Tau Industrial Zones Authority).

In the regions of Asia and Oceania, building of social infrastructure and development in the field of resources and energy are in progress at a brisk pace, against the background of economic growth. Particularly in Vietnam, a number of large-scale civil engineering projects are now in various stages of planning, such as port facilities improvement, road and railroad construction and power station construction, including infrastructure-related projects combining the strengths of both public and private sectors as a result of economic cooperation between Japan and Vietnam. It is expected that many Japanese companies will actively invest in those projects in Vietnam.

Vast majority of construction projects in Vietnam now utilize concrete-based materials, and Vietnam’s cement consumption has reached 50 million tons, surpassing that of Japan at around 40 million tons. Concrete piles have been used predominantly for such projects; however, Nippon Steel anticipates increased use of steel pipe piles, which are easier to penetrate deeply and are also lighter and more durable.

Nippon Steel has worked closely with Vietnam’s University of Transport and Communications in developing a design manual and guidelines. We will continue to adapt to the changing market conditions to contribute to social-capital improvements in Vietnam, creating demand for increased steel consumption and utilizing our accumulated technical knowledge and design creativity. Nippon Steel will also continue its involvement in large-scale ODA projects in other areas of the Asia-Oceanic region.

This is the first production base of Nippon Steel for steel for construction uses outside of Japan. East Asian countries, in which Nippon Steel has been endeavoring to promote steel-based construction materials, are now entering an era of structural steel materials. We are confident that this investment in Vietnam to create a local supply capability will accelerate the growth in consumption of structural steel materials.




1. Outline of the joint venture

Name of the company : Nippon Steel Pipe Vietnam Co., Ltd. (NPV)
General Director : Toshitaka KOGISO (appointed by Nippon Steel)
Location : Phu My II Industrial Zone, Ba Ria-Vung Tau Province, southern Vietnam
Establishment : June 18, 2010
Capital : $15 million
Capital formation : Nippon Steel 51%; Metal One Corporation 20%; Vietnam Steel Corporation 10%; each of Sumitomo Corporation, Marubeni-Itochu Steel Inc., Hanwa Co., Ltd. and Nippon Steel Trading Co., Ltd.4.75%

2. Outline of the plant

Location : Phu My II Industrial Zone, Ba Ria-Vung Tau Province, southern Vietnam
Ground area : 100,000m2
Production facilities : One spiral pipe mill, etc.
Production capacity : 5,000 tons/month (Stage 1)
Products : Steel pipe piles, Steel pipe sheet piles, etc.
Total investment : $31 million
Employees : approx. 150
Start of construction : October 2010 (scheduled)
Start of operation : May 2011 (scheduled)


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Public Relations Center, General Administration Div. Tel: +81-3-6867-2135