OREANDA-NEWS. JFE Steel Corporation has signed a contract to pay USD 225 million to acquire a five-percent stake in Formosa Ha Tinh Steel Corporation (FHS), a joint-venture company that is currently constructing integrated steelworks in Vietnam. The project is being spearheaded by FHS's founder, Formosa Plastics Group (FPG), a Taiwanese integrated supplier of petrochemicals. JFE Steel will also provide the project with technical support.

Under the JFE Group's fifth medium-term business plan from April 2015 to March 2018, JFE Steel aims to increase annual steel sales to 40 million tons. The company's investment in FHS is one of its first major steps toward achieving this target.

JFE Steel will work with FHS to get the new integrated steelworks operating stably as soon as possible. Going forward, JFE Steel expects to expand the JFE's business network by selling the products made at FHS to our customers.