The State-owned Vietnam Steel Corp (VSC) will team up with India’s global juggernaut Tata Steel Corp to build a new mill in central Ha Tinh province.

The companies signed a memorandum of understanding on May 29.

According to a preliminary feasibility study, the project will cost US$3-3.5 billion and will be able to churn out 4.5 million tonnes of steel products a year. The mill will be located in Ha Tinh’s Vung Ang Industrial Zone, and use iron ore from the Thach Khe mine.

VSC and Tata will soon conduct a feasibility study and prepare conditions for construction work.