News Release
JFE Steel Corporation
Kawasaki Kokan Co., Ltd.
Marubeni-Itochu Steel Inc.
JFE Steel to Launch Steel Pipe Manufacturing and Sales JV in Zhejiang, China
Tokyo --- JFE Steel Corporation (JFE) announced today that on May15, the company, Kawasaki Kokan Co., Ltd. (Kawasaki Kokan), Marubeni-Itochu Steel Inc. (MISI) and Taiwan’s largest cold drawn pipe manufacturer Shuan Hwa Industrial Co., Ltd. (Shuan Hwa Industrial) had signed an agreement to establish a joint venture company in Zhejiang Province, China. The new company, Jiaxing JFE Precision Steel Pipe Co. Ltd., will undertake the manufacture and sale of small-diameter electric resistance welding (ERW) pipes and cold drawn steel pipes, mainly targeting automotive parts makers.
By leveraging JFE Steel and group company Kawasaki Kokan’s production technologies for small-diameter ERW pipes and Shuan Hwa Industrial’s production technologies for cold drawn steel pipes as well as the sales capabilities of Marubeni-Itochu Steel, the new company will manufacture and sell high-quality steel pipes to meet the on-site procurement needs of automotive parts makers.
China is the world’s biggest producer of automobiles and in Eastern China, where the new company will be based, there is a concentration of automotive parts makers. With automobile production forecast to continue growing in China, demand for automotive steel pipes is expected to expand steadily.
| About Jiaxing JFE Precision Steel Pipe Co., Ltd. | ||||||||||||
| Location: | Jiaxing Economic and Technological Development Zone | |||||||||||
| Representative: | To be deployed from JFE Group | |||||||||||
| Foundation: | October 2013 (planned) | |||||||||||
| Capital: | 96 million Chinese yuan | |||||||||||
| Ownership: |
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| Products: | Small-diameter ERW pipes for automobile parts and construction machinery and cold drawn steel pipes | |||||||||||
| Main facilities: | Production facility for ERW pipes, cold drawing facility and heat treatment facility including bright annealing furnace | |||||||||||
| Capacity: | Approximately 2,000 tons/month | |||||||||||
| Employees: | Approximately 100 (planned) | |||||||||||
| Production start: | January 2015 (planned) | |||||||||||
Location of Jiaxing JFE Precision Steel Pipe Co. Ltd.
| About Shuan Hwa Industrial Co., Ltd. | ||||||||||
| Location: | Tainan City, Taiwan | |||||||||
| Foundation: | 1973 | |||||||||
| Chairman: | Tsao Yong-Wen | |||||||||
| Business: | Steel pipe re-rolling (cold drawn steel pipes) | |||||||||
| Capital: | 165mil.NTD | |||||||||
| Sales: | 1,500mil.NTD | |||||||||
| Employees: | 200 (as of Mar. 2013) | |||||||||
| Ownership: |
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| Main facilities: | Cold drawing facilities (Taiwan: 1,200 tons/month, Vietnam: 1,000 tons/month) | |||||||||
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| JFE Steel Corporation: | https://www.jfe-steel.co.jp/cgi-bin/contact.cgi |
