Posco Engineering & Construction Co, the construction arm of South Korea’s largest steelmaker Posco, has signed a $400M deal to build a raw materials handling plant in Vietnam.

Under the contract with Formosa Ha Tinh Steel Corp, an affiliate of Vietnam’s Formosa Group, Posco E&C will build the facility in a steel complex, located in northern Ha Tinh Province, with an annual production capacity of 7Mt/y of crude steel.

The company said construction will be started in February and be completed by January 2015.

Posco beat 10 other contractors from Taiwan, China and elsewhere to secure the deal, which it expects would open more doors for the company to bid for Fomosa Ha Tinh's projects, including future steel plants and petrochemical facilities.

Source: Daily ‘The Korea Herald’, Seoul, through Yonhap News Agency