Sumitomo Metals and China Steel Conclude Agreement to Establish Steel Sheet Joint Venture in Vietnam
- Sumitomo Metals and China Steel enter new phase of global collaboration -

Sumitomo Metal Industries, Ltd. (Sumitomo Metals) and China Steel Corporation (CSC) studied the construction of a steel sheet mill (China Steel Sumikin Vietnam Joint Stock Company: CSVC) from the end of 2007. Today we concluded a joint-venture contract.

CSVC will have a full lineup of high-class steel sheet products including those used for automobiles, such as cold rolled coil, electromagnetic steel sheet and hot-dip galvanized steel sheet. Annual production of 1.6 million MT is planned in order to respond to demand from customers in Vietnam and surrounding countries. We aim to commence operation of the plant at the beginning of 2012.

This project is one of the largest collaborations between Sumitomo Metals and CSC Group following the establishment of a joint venture for upstream operation at Wakayama Steel Works (East Asia United Steel Corporation) in 2003. Sumitomo Metals and CSC will provide technical support to CSVC to meet growing requirements from customers in Asia in terms of both quantity and quality.

1. Company Name: China Steel Sumikin Vietnam Joint Stock Company
2. Location: My Xuan A2 Industrial Zone, Ba Ria Vung Tau Province, The Socialist Republic of Vietnam
3. Business: Manufacture and sale of hot-cut-sheet, pickling and oiling steel coil, cold rolled coil, electromagnetic steel sheet, and hot-dip galvanized steel sheet
4. Capacity: 1.6 million MT per year
5. Equipment: Heavy-gauge shearing line, pickling line, tandem cold rolling mill, continuous galvanizing line, annealing and coating line, and auxiliary lines
6. Total investment: Approx. 1.15 billion U.S. dollars
7. Scheduled startup: Beginning of 2012
8. Capital participants:
China Steel Corporation 51%
Sumitomo Metals 30%
Sumitomo Corporation 5%
Others 14%

<Profile of China Steel Corporation (CSC)>
1. Location of headquarters: Kaohsiung, Taiwan
2. Chairman: Mr. W. Y. Lin
3. Sales: 207.9 billion New Taiwan dollars (2007)
4. Production: 10,188,920 tons (2007)
<Location of CSVC>

<History of collaboration between Sumitomo Metals and CSC>
2003　　Establishment of a joint venture for upstream operation at Wakayama Steel Works (East Asia United Steel) in Japan
2007　　CSC Group's capital participation in Sumitomo Metals' steel service center (Thai Sumilox) in Thailand
2008　　Sumitomo Metals' capital participation in CSC Group's steel service center (CSGT Metal Vietnam) in Vietnam