Vietnam Japan Gas (VJG), a joint venture between Taiyo Nippon Sanso and Tomoe Shokai, has obtained an order from the largest domestic electric furnace producer in Vietnam, Pomina Steel.
The order is for onsite supply of 6000m3/h of gaseous oxygen, and there will also be a facility next to the plant, which will have a capacity of 5000m3/h for liquid oxygen and liquid nitrogen, as well as 280m3/h for liquid argon.
As a result of this order, VJG secures its position as the largest industrial gas company in Vietnam, accounting for a share of just over 40% of the entire Vietnamese liquid gas market.
VJG was established in January 1996 through an investment by Tomoe Shokai and Nissho Iwai; later, Nissho Iwai withdrew its capital, and a joint investment was set up between Tomoe Shokai and Taiyo Nippon Sanso, which had been aiming to move into Vietnam.
The effects of the economic slump were relatively slight in the country, and while not reaching that of China’s, an economic growth rate of 6-7% is anticipated.
Given the stability of the political system in Vietnam, not only Japanese companies, but US and European firms as well are paying great attention to the country as a high growth market in Southeast Asia.
Taiyo Nippon Sanso focused on this growth potential and resolved on making a rather bold investment.
Hirosuke Matsueda, President of Taiyo Nippon Sanso, commented, “Vietnam is a market where stable growth is anticipated, along with heavy industry. For us this is one place to be given preference.”