Under the document, Vietinbank will provide Pomina with a loan worth roughly USD50 million out of the plant’s total investment of USD76 million and Concast will be the supplier of technology and equipment for the plant.

The plant is part of Pomina’s steel production project with a total investment of more than USD300 million. Its construction is expected to begin on October 17 at the Phu My industrial zone, Ba Ria-Vung Tau province and last three years.

The project includes a 1 million tonne a year steel ingot plant, a 500,000 tonne a year rolling steel mill and a sea port capable of handling 3 million tonnes of goods a year to serve the plant’s operation.

Pomina expects to increase capacity of the steel ingot plant to 1.5 million tonnes a year in phase II, becoming the country’s largest steel ingot producer. Pomina is currently Vietnam’s leading steel producer, providing 1.1 million tonnes of construction steel each year.