Le Anh Tuan, vice president of the Australian-invested company, said the pre-painted steel products were made with zinc-aluminum coating and anti-fungus performance.

"BlueScope Steel turns out the products in various colors to meet diverse needs of companies for developing industrial facilities including retail and wholesale stores in Vietnam," Tuan told the Daily before the launch ceremony in HCMC.

He underscored the importance of having new products to provide project developers with more options for construction materials in a time of falling demand due to the impact of the global economic turbulence on the world's steel industry.

"Vietnam's steel industry is not an exception," Tuan said. He quoted sources including the Vietnam Steel Association as saying that steel makers in this market had seen their turnover fall by at least 30% over the past six months.

Earlier this year, the association estimated domestic steel production in the first quarter plunged by 24% year-on-year to 761,000 tons while steel consumption slumped by up to 71% compared to the year earlier period to around 700,000 tons.

"BlueScope Steel Vietnam faces the same difficulties," Tuan said, pointing out the decline in foreign direct investment (FDI) in the country in recent months as one of the reasons.

The Ministry of Planning and Investment's figures showed Vietnam drew over US$6 billion in FDI including injected capital in operational projects in the January-March period, down nearly 40% year-on-year.

However, Tuan said BlueScope Steel was optimistic about Vietnam's steel market as this was a developing market and many investors would return and come to build factories in this market.

"New opportunities come when investors return to Vietnam again as they will need steel, especially the quality products," Tuan said.

Currendy, BlueScope Steel Vietnam turns out pre-painted and zinc-aluminum alloy-coated steel sheets in addition to other steel materials. The company has operated a US$105-million metallic coated and painted rolled steel mill in Phu My 1 Industrial Zone in the southern province of Ba Ria-Vung Tau since November 2005.

The facility includes a 125,000 ton per annum metallic coating line and 50,000 ton per annum paint line.

Source: Saigon Times