Vietnam`s consumption of construction steel was expected to continue growing, and the market was attractive to investors.
Nippon Steel & Sumikin Bussan Corp (NSSBC), the trading arm of Japan’s largest integrated mill Nippon Steel & Sumitomo Metal Corp, on September 19 announced that it has purchased a 10.54% stake in Vietnam’s construction steel processor QH Plus Corp, informed the latter in a statement.
Under the agreement, the two sides agreed to expand steel production and the network base to the world market.
NSSBC sees significant growth potential in Vietnam’s construction steel sector, where the number of steel frame buildings expected to rise, S&P Global reported.
The company plans to supply base materials such as plate to QH for steel frame production and become involved in domestic distribution.
NSSBC has a long-standing relationship as a supplier to QH of materials and the stake acquisition will strengthen that relationship, the official said.
According to a Tokyo-based trader, Vietnam’s consumption of construction steel was expected to continue growing, and the market was attractive to investors.
“Japan’s construction steel demand is expected to decrease because of the declining birth rate, so having the base to expand a business in a growing country is important for Japanese traders to survive,” the trader was quoted by S&P Global as saying.
Nguyen Quang Huy, CEO of QH Plus, stated that this strategic cooperation will not only bring benefits for all parties involved, but also contribute to the development of Vietnam’s construction industry in the coming time.
QH specializes in producing and supplying steel structures, pre-fastened steel buildings, construction steel building, building components & building materials.
The company was the supplier of structural steel for super high-rise building Landmark 81, the tallest tower in Vietnam and one of the 10 tallest building in the world.