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JFE Steel Corporation
Kawasaki Kokan Co., Ltd.
Marubeni-Itochu Steel Inc.

Jiaxing JFE Precision Steel Pipe Celebrates Production Startup in China

Tokyo --- JFE Steel Corporation announced today that Jiaxing JFE Precision Steel Pipe Co. Ltd. (JJP) held an inauguration ceremony to formally celebrate its launch of operations to manufacture small-diameter electric resistance welded (ERW) pipes and cold drawn steel pipes, mainly targeting automotive parts makers, in Zhejiang Province, China on October 20. Actual operation of these facilities began in July.

JJP is a joint venture company established by JFE Steel, Kawasaki Kokan Co., Ltd., Marubeni-Itochu Steel Inc. (MISI) and Shuan Hwa Industrial Co., Ltd., Taiwan’s largest cold-drawn pipe manufacturer.

The ceremony was attended by approximately 100 guests, including Director Chen Lizhong and Deputy Director Zhu Quangen of the Jiaxing Economic and Technological Development Zone’s Management Committee, JFE Steel’s Tubular Business Division General Manager Itsuya Ishikawa and Tubular Business Division Assistant General Manager and Chita Works General Superintendent Masaharu Saisu, Kawasaki Kokan President Ryosuke Mochizuki, MISI Tubular Products Division Executive Officer Koji Shimada, and Shuan Hwa Industrial Executive Officer Tzu Wen Tsao.

The joint venture is based in eastern China, where has a high concentration of automotive parts makers. China, the world’s biggest automobile market, is forecast to see continued growth in automobile production, which should steadily expand the demand for automotive steel pipes. JJP expects to help meet this demand by manufacturing and selling high-quality steel pipes to automotive parts makers.

About Jiaxing JFE Precision Steel Pipe Co., Ltd.
Location: Jiaxing Economic and Technological Development Zone
Chairman: Ryosuke Mochizuki (president of Kawasaki Kokan)
General Manager: Masashi Aoyagi
Establishment: July 2014
Capital: 96 million Chinese yuan
Ownership: 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 60
Production start: July 2015

JJP’s ERW pipe production facility JJP Chairman Ryosuke Mochizuki speaking at the inauguration ceremony

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