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China Steel Corporation (CSC) Steel Holdings Bhd is disposing its 6pc shareholding in CSGT Metals Vietnam Joint Stock Company (CSMV) for $1.2mn, via a share transfer agreement with CSMV. 


The Chinese company, which has not been able to secure a commanding share of the Vietnam steel market, said it was exiting the joint venture to focus its resources on core businesses.


CSC tried to increase its sales in the Vietnam steel market but faced stiff competition from the country’s local manufacturers. Additionally, the implementation of several free trade agreements increased competition from imported steel products against its own product assortment. 


Proceeds from the disposal will be used for CSC group’s working capital. It expects to complete the disposal within three months. CSC’s shares rose 2.05pc on the day of announcement supporting the company’s desire to focus on the core aspects of its business. 


CSGT Metals Vietnam Joint Stock Company (CSMV) was established in 2007. It is a joint venture of seven shareholders including China Steel, Nippong Steel & Sumitomo Metal Corporation, Kingrock International Development Ltd, China Steel Malaysia, Kao Hsing Chang Iron and Steel Corporation, Fuku Holding Co., Ltd., Sumikin Bussan Corporation.

CSMV supplies and processes flat steels including hot rolled, cold rolled, ES, GI, PPGI, as well as stainless steel and aluminum.

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