China Steel Corp., the largest steel maker in Taiwan, said Monday that it is studying the feasibility of taking a stake in a Formosa Plastics Group's (FPG's) investment in Vietnam. 'We are considering the possibility of investing in FPG's steel plant (to be built) in Vietnam's Ha Tinh Province, ' China Steel Executive Vice President L.M. Chung said. 'We are looking into whether and how the investment will boost shareholders' value and make China Steel more profitable, ' Chung added. Local media reported earlier that day that China Steel might take a stake of up to 10 percent in the plant and that the investment proposal will be submitted to the China Steel board of directors for approval later this month, adding that the investment is likely to be finalized by the end of this year at the earliest. The media said the investment is expected to help both sides in terms of product development and technology exchanges. However, Chung declined to disclose the actual size of the stake it is eyeing in FPG plant, which will be capitalized at US$2.7 billion with a total investment of about US$80 billion. 'As the FPG investment in Vietnam is huge, China Steel is unlikely to hold a large stake should the company decide to go ahead with the investment,' said Chung. FPG, one of Taiwan's largest conglomerates, owns businesses in various sectors such as petrochemicals, semiconductors and biotechnology. The group has secured approval from the Vietnamese authorities to build the Vietnam steel complex with annual production capacity of 7.5 million tons in the first phase of development. According to news reports, China Steel wants to further strengthen its business ties with FPG, as the petrochemical conglomerate has taken a 5 percent stake in China Steel's US$600 million cold-rolled steel plant that will be built near Vietnam's Ho Chi Minh City. Chung said the ties with FPG weigh on the investment consideration to some extent, but reiterated that any investment has to be profitable for China Steel. China Steel obtained the greenlight from Vietnam earlier this year to build the steel plant and the company is aiming to complete construction by the end of 2012, with commercial production scheduled to begin in 2013. 