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[ferro-alloys.com] Nippon Steel & Sumikin Bussan Corp, the trading arm of Japan's largest integrated mill Nippon Steel & Sumitomo Metal Corp, said Wednesday it has purchased a 10.54% stake in construction steel processor QH Plus Corp in Vietnam.

QH operates a rebar processing, steel production and coil center in Ho Chi Minh City and also distributes steel products.

NSSBC sees significant growth potential in Vietnam's construction steel sector, where the number of steel frame buildings expected to rise, a company official said Thursday.

It plans to supply base materials such as plate to QH for steel frame production and become involved in domestic distribution, the official added.

NSSBC has a long-standing relationship as a supplier to QH of materials and the stake acquisition will strengthen that relationship, the official said.

A Tokyo-based trader said Vietnam's consumption of construction steel was expected to continue growing, and the market was attractive to investors.

"Japan's construction steel demand is expected to decrease because of the declining birth rate, so having the base to expand a business in a growing country is important for Japanese traders to survive," he said.

• [Editor:王可]