Dongkuk Steel Establishes Foothold for Entry into Vietnam Color Steel Sheet Market

Steel Service Center (VSSC) Secures 15% Stake

Dongkuk Steel announced on the 27th that it has secured a 15% stake in the Vietnam Color Steel Plate Steel Service Center (VSSC).

[Asia Economy Reporter Oh Hyung-gil] Dongkuk Steel has established a foothold in Vietnam to expand its global color steel sheet network.

On the 27th, Dongkuk Steel announced that it secured a 15% stake in the Vietnam Color Steel Sheet Steel Service Center (VSSC). The center is a processing facility that takes steel sheets shipped in coil form and cuts them to the length and width desired by customers.

VSSC is located in the Phu My Industrial Complex, Ba Ria-Vung Tau Province in southern Vietnam, adjacent to a port and within one hour's access to home appliance production complexes and Ho Chi Minh City, making it a strategic location. It occupies approximately 6,400 pyeong (about 21,150 square meters) and is equipped with one slitter and one shearer.

When operating at full capacity, it can process and sell about 70,000 tons of color steel sheets annually. The facility was completed in December last year, has stabilized, and plans to begin full-scale operations from the second quarter of this year.

Dongkuk Steel exports about 10,000 tons of color steel sheets annually to Vietnam and aims to use VSSC as a base to discover new demand for premium color steel sheets in the local Vietnamese market.

A Dongkuk Steel official stated, "Vietnam is experiencing rapid economic growth, which will expand consumption of high-quality building materials," adding, "this is part of the 'DK Color Vision 2030' global expansion strategy announced last year, and we are considering further expansion into the US, Europe, and Oceania regions in the future."