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|
|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|
|Business:||Steel pipe re-rolling (cold drawn steel pipes)|
|Employees:||200 (as of Mar. 2013)|
|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|