NAM KIM STEEL JSC PLANS TO BUILD A FACTORY OF WHICH CAPABILITY IS 800,000 TONS/ YEAR

It is estimated that the total investment capital of Nam Kim Steel Joint Stock Company’s steel factory project is about VND 2,200 billion. The factory will be built in Ba Ria Vung Tau province.

The Board of Directors of Nam Kim Steel Joint Stock Company (Stock code: NKG) has just released a resolution approving the pre-feasibility study report of Nam Kim Steel Factory in Ba Ria Vung Tau.
Total capacity of the factory is estimated at 800,000 tons per year with an expected investment capital of about VND 2,200 billion.
The factory will produce zinc galvanized iron sheets, zinc-aluminum galvanized iron sheets, paint-coated zinc-aluminum galvanized iron sheets, and paint-coated zinc galvanized iron sheets. In addition, the factory will manufacture steel pipes, box steel, and products made from rolled steel, cold rolled steel, zinc galvanized steel, black steel tape, zinc galvanized steel tape.
The Board of Directors authorized Mr. Ho Minh Quang – Chairman of the Board of Directors – to decide the location of the project, sign land lease contracts and purchase machines and production lines.
Recently, Nam Kim Steel Joint Stock Company held an extraordinary General Meeting of Shareholders to approve of the plan to issue 30 million shares to strategic shareholders at a price of not less than VND 27,000 per share. The release time will be in the third or fourth quarter of 2017.
The proceeds from the issuance of shares is around VND 810 billion. In particular, VND 400 billion will be used to add to working capital; VND 150 billion will be used to invest in the Nam Kim Steel project which is under construction; and VND 260 billion will be used to invest in Nam Kim Corea Joint Stock Company.

In the second quarter of 2017, Nam Kim Steel Joint Stock Company’s revenue reached VND 3,094 billion, rising by 42%. However, its profit after taxes fell by 19%, reaching VND 194 billion.
Nam Kim Steel Joint Stock Company said that the cost of raw materials and selling expenses increased because it promoted the development of marketing its brand. In addition, Nam Kim 3 factory put into operation a number of lines, thus increasing the medium-term interest expenses 112% to VND 68 billion. These factors made the company’s profit after taxes drop by 19%.
In 2017, Nam Kim Steel Joint Stock Company plans to produce 800,000 tons of products per year, an increase of 48% in comparison with 2016.

http://namkimsteel.net/news/nam-kim-steel-jsc-plans-build-factory-capability-800000-tons-year/

Steel manufacturers struggle with anti-dumping lawsuits

Steel manufacturers struggle with anti-dumping lawsuits

Nam Kim Steel -  Vietnamese steel manufacturers are awaiting decisions as Thailand, Malaysia and Indonesia, which buy 50 percent of Vietnam’s exports, are taking anti-dumping investigations against imports from Vietnam.

According to the Vietnam Steel Association (VSA), the three countries all began taking investigations in September. In the worst case scenario, Vietnamese exporters would bear very high anti-dumping duties of up to 50 percent
Just within one week, Thailand announced three investigations against Vietnam’s steel products.
Malaysia has also initiated an anti-dumping investigation against Vietnam’s alloy and non-alloy cold rolled 0.2-2.6 mm thick and 700-1300 mm wide steel exports.
According to Nguyen Phuong Nam, deputy head of the Competition Administration Department (CAD), the primary decision will be released within 120 days since the day the investigation began.
In September, Indonesia announced it will conduct sunset review on cold roll coil imports from Vietnam, Taiwan, China, South Korea and Japan.
The majority of Vietnam’s steel mills have small and medium operation scale which have limited capability to struggle with anti-dumping lawsuits. 
Meanwhile, investigations to impose anti-dumping duties on Vietnamese products tends to be the ‘weapon’ more and more import markets are using to prevent imports and protect local production.
According to CAD, steel was the product subject to the highest number of anti-dumping investigations in 1994-2014 which accounted for 29 percent of total cases.
A department’s report showed that Vietnamese exporters became the defendant in five anti-dumping cases in the last five years in the US market. Only in one case, relating to carbon steel tubes, did Vietnamese get a judgment beneficial to them.
After the cases, the US fell to nearly the last position in the list of Vietnam’s steel export markets. The export turnover of steel products to the market just accounts for 2.8 percent of total steel export turnover.
Similarly, after Brazil imposed anti-dumping duties of 35.6 percent on Vietnam’s stainless steel coil, which began in 2013 and will last three years, Brazil is no longer a Vietnam’s export market.
A CAD official noted that steel products are often subject to anti-dumping investigations because countries all want to protect their basic industries.
According to Nguyen Van Sua, VSA’s deputy chair, the only solution for Vietnam to avoid lawsuits and minimize risks is to diversify export markets. In 2011-2013 alone, Vietnam faced eight anti-dumping investigation cases in the markets of the US, Australia, Canada, Indonesia and South Korea.
In all cases, whether or not Vietnam was judged as dumping in the export markets, its enterprises had to spend big money on the lawsuits.
The Vietnam Chamber of Commerce and Industry warned that Vietnam may face more anti-dumping lawsuits in the future as Vietnam more deeply integrates into the world. 

Source: Vietnamnet