HÀ NỘI — Japanese Kyoei Steel Company officially became strategic shareholder of Việt Nam-Italy Steel Joint Stock Company (VIS).

The Japanese Kyoei Steel Company purchased 20 per cent stake from Thái Hưng Company, VIS’s biggest shareholder. After the VNĐ480 billion (roughly US$21.17 million) transaction, Thái Hưng owns 45 per cent stake in VIS.

According to VIS’s management board, the co-operation between Việt Steel, Thái Hưng Company and Kyoei Steel will help the company to further develop in the future. In addition, it expected to receive technological support from Kyoei Steel Group to improve its production and business.

VIS was established in 2001 by Sông Đà Corporation. The corporation later decided to divest all of its 26.1 million shares from VIS.

Thái Hưng is a large distributor for many steel manufacturers such as VIS, Việt Nam Steel Corporation, Posco, Pomina and Thái Nguyên Iron and Steel Corporation (TISCO).

Currently, the company holds around 3.6 per cent of market share. It plans to develop new plants to reach a capacity of 850,000 tonnes of steel and 1.1 million tonnes of steel billet.

VIS’s revenue and after-tax profit in 2016 were VNĐ3.7 trillion and VNĐ72 billion respectively. In the first nine months of this year, the company attained VNĐ4.64 trillion in revenue and VNĐ67 billion in after-tax profit.

Established in 1947, Kyoei Group has a charter capital of 18.5 trillion yen and operates in 20 countries across the world.

Currently, Kyoei Steel only focuses on rolling steel in Việt Nam, with steel billets being purchased from other companies.

Kyoei Steel is also involved in the joint venture of Thị Vải International Port in Bà Rịa-Vũng Tàu Province. This $56 million project has been operational since 2014. — VNS