Japan’s Yamato Kogyo Group has acquired 49pc stake in Vietnam’s Posco SS Vina for an amount of $100mn.
Posco SS Vina is a subsidiary of Posco Specialty Steel, owned by Posco, South Korea. Posco SS Vina’s steel plant manufactures steel section and rebar in Vietnam with an annual production capacity of 1mn mt.
In this transaction, Posco SS Vina sold its rolling facilities and rebar line to Yamato. Post-acquisition, Posco SS Vina would be renamed as Posco Yamato Vina Joint Stock Co. The deal is in-line with Yamato’s strategy to expand into emerging markets which have steady steel demand fueled by growing infrastructure investments. Vietnam is positioned as one of the most important markets for steel sector, in Asia.