The Essar Group will establish a $527-million joint venture to build a 2 million tonnes hot-rolled steel mill, in a three-way joint venture with State-run Vietnam Steel Corporation (VSC) and rubber group Vietnam General Rubber Corporation (Geruco) in which Essar would hold a majority 65 percent stake.

VSC is Vietnam's largest steel producer and it would hold 20-per cent stake with Geruco holding the remaining 15 per cent.

The mill, due to be completed in 2009, would use billets imported from India. Vietnam relies on the imports of steel and billets, mainly from China.