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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
JFE Steel 36%
Kawasaki Kokan (wholly owned subsidiary of JFE Steel) 15%
MISI Tokyo 10%
MISI Hong Kong 20%
Shuan Hwa Industrial 19%
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.

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)
Yong-Wen Tsao
Tzu Wen Tsao
River Steel (wholly owned subsidiary of JFE Steel)
Main facilities:   Cold drawing facilities (Taiwan: 1,200 tons/month, Vietnam: 1,000 tons/month)

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