Posco, the world’s fourth largest steelmaker, has begun work to expand its stainless steel mill in Vietnam.

The company plans to nearly triple the production capacity of the Posco VST plant to 235kt/y by February 2012 and 285kt/y by 2014.

Posco VST was established in Dong Nai Province in October 2009 after the Korean firm acquired Asia Stainless Corp.

In the first stage of expansion to 2012, the company will add a cold rolling press with a capacity of 100kt/y and annealing equipment capable of processing 200kt/y.

In the second stage, slated for completion in 2014, another 100kt cold rolling press will be installed.

Posco said that Southeast Asia’s cold rolled stainless steel output falls far short of demand, resulting in the majority of products being imported.

According to the steelmaker, about 310kt/y of cold rolled stainless steel is produced in the region while demand stands at 660kt/y.

Source: The Korea Herald, Seoul