Chinese stainless steel producer Yongjin Technology Group plans to invest in a green stainless steel project in Vietnam,

Yongjin said in a Jan. 14 statement. The project is expected to become the first domestic hot rolled and smelting project in Vietnam. The construction would take 72 months, according to Yongjin.

Phase one of the project includes a hot rolling line as well as a continuous annealing and pickling line with an output of 1.95 million metric tons/year of hot-rolled stainless steel coils.

The project’s second phase comprises a stainless steel smelting workshop with an output 2 million mt/year of qualified stainless steel billets, Yongjin said. Under the terms, Yongjin subsidiary Singvin Asset Management (Singapore) Pte. Ltd. will jointly invest $380 million with Land River Holdings (Singapore) Pte. Ltd. and Dong Nai Son Ha Industrial Park Investment JSC to establish New Vietnam Alloy New Materials Co. Ltd., which will operate the plant.

Yongjin said the investment aligns with China’s strategy, encouraging steelmakers to “go global” to reduce domestic steel capacity.

Platts, part of S&P Global Energy, assessed 304-grade 2 mm 2B stainless cold-rolled coil at $2,000/mt CFR East and Southeast Asia in the latest session Jan. 9, up $40/mt week over week.