Taiwan’s China Steel Corp. (CSC) has signed an agreement with Japan’s Sumitomo Metal Industries (SMI) to set up a cold rolled steel mill in Ho Chi Minh City, Vietnam.

According to the contract, CSC will invest around US$292 million to acquire 51 percent of shares in the joint venture-China Steel Sumikin Vietnam Joint Stock Company (CSVC), and SMI will get about 35 percent shares.

The new mill is capable of producing 1.5 million tons of cold rolled products per year.