Reportedly, South Korea’s Posco has begun the construction work on its new stainless steel plant in Vietnam on Monday to expand the production capacity to meet strong demand for local construction and housing industry.

The company is planning to triple its current annual capacity in Vietnam plant to 235,000 tons by 2012; furthermore, the company expects it to reach 285,000 ton by 2014.

It’s known that Posco acquired Asia stainless Corp. in 2009 and established Posco VST., the only stainless steel cold rolling plant In Vietnam.

Moreover, Posco plans to install two cold rolling stainless steel lines, capable of producing 100,000 ton/ton.

According to Posco, Vietnam's annual demand for cold rolled stainless steel is at 660,000 ton, while there is only about 310,000 ton produced locally.