If licensed, construction of the US$5.3 billion plant in the central coastal province of Khanh Hoa will start in November this year and be completed in March 2013.

In the first phase, the plant will be capable of producing 4 million tonnes of hot rolled steel and 2 million tonnes of sheet steel a year. In the second phase, the figures will be raised to 6 million and 8 million tonnes respectively.

Posco is currently building an US$11.5 billion steel complex in Khanh Hoa province’s Van Phong Bay together with the Vietnam Ship building Industry Group (Vinashin).

Posco has three other joint venture steel production projects in Vietnam.