VinMetal, the steel producer under Vietnamese conglomerate Vingroup, has signed a contract with Italy’s Danieli & C. Officine Meccaniche S.p.A. to supply core equipment for a rail and section steel line.
In a statement on Thursday, Vingroup said the two will work together at its integrated steel complex in Ha Tinh province, central Vietnam. The companies did not disclose any financial detail.
Vingroup said the agreement is a step in its strategy to produce steel for transport infrastructure, industry, and logistics.
Under the contract, Danieli will design, manufacture, supply, and commission the core equipment for the rail and section line. The line is designed for more than 700,000 tons a year.
VinMetal said the output can serve high-speed rail projects, industrial works, bridges, ports, and logistics infrastructure.
The cooperation will underpin the quality of VinMetal’s rail and section products. It can help Vingroup secure domestic supply and reduce reliance on imports. The steel production can fit in Vingroup’s expanding industrial and infrastructure ecosystem.
Danieli is a metallurgical technology group with more than 100 years of experience and more than 1,000 melting, casting, and rolling projects worldwide.
VinMetal is building an integrated steel complex in the Vung Ang Economic Zone in Ha Tinh. The company said the first phase is designed to produce about 6 million tons of steel a year, with a plan to expand to 20 million tons a year in a second phase.