steelmaker JFE Steel Corp. has signed a joint-venture agreement
to set up a steel pipe plant in Chinas Zhejiang province
to target automotive producers, it said May 16.
The new company, Jiaxing JFE
Precision Steel Pipe Co. Ltd., will manufacture and sell
small-diameter electric-resistance welding (ERW) pipes and
cold-drawn steel pipes. It will employ about 100 people, JFE
With capital of 96 million yuan
($15.5 million), the joint venture is 36-percent held by JFE
Steel, 15-percent held by JFE Steel affiliate Kawasaki Kokan
Co. Ltd., 10 percent by Marubeni-Itochu Steel Inc. Tokyo, 20
percent by Marubeni-Itochu Steel Inc. Hong Kong, and 19 percent
by Shuan Hwa Industrial Co. Ltd., Taiwans largest
cold-drawn pipe manufacturer.
Construction of the
2,000-tonne-per-month facility is expected to be completed by
September 2014, while production starting in January 2015. With
automobile production forecast to continue growing in the
country, demand for automotive steel pipes is expected to
expand steadily, JFE Steel said.
A version of this article
was first published by AMM sister publication Steel