Tata Steel Ltd''s wholly owned subsidiary NatSteel Asia Pte. Ltd. will acquire a controlling stake in two rolling mills in Vietnam for an enterprise value of around $41 million.

The two companies, both located in Haiphong are SSE Steel, in which NatSteel will acquire the entire stake and Vinausteel Ltd in which it will take a 70-per cent majority ownership. The remaining 30 per cent equity will be held by Vietnam Steel Corporation.

According to Tata Steel, the deals will expand NatSteel''s annual capacity by an additional 430,000 tonnes.

SSE Steel has a capacity to make 250,000 tonne per annum of bar / wire rods while Vinausteel produces 180,000 tpa reinforcing bar. SSE Steel has one of the most modern rolling mills in Vietnam, while the Vinausteel brand is among the best-known brands in Vietnam.

The acquisition of these two mills will allow Tata Steel to complement, strengthen and expand its presence in Vietnam, where it already operates a 100,000-tpa reinforcing bar / wire rod mill about 70km from Hanoi in a joint venture with VSC, through NatSteel.