POSCO steel company from the Republic of Korea will build a US$1.128 billion steel factory in Phu My II Industrial Zone in the southern province of Ba Ria-Vung Tau.

To carry out the project, POSCO signed a contract leasing 130 ha of land with the Urban and Industrial Zone Development Investment Corporation (IDICO) - the IZ’s investor - in Ho Chi Minh City on May 9.

Once operational in September 2009, the factory will produce 1.2 million tonnes of hot and cold rolled steel each year.