JFE Steel to Launch Steel Pipe Manufacturing and Sales JV in Zhejiang, China
05/16/2013 - JFE Steel announced that it, Kawasaki Kokan Co., Marubeni-Itochu Steel Inc. and Taiwan's largest cold drawn pipe manufacturer Shuan Hwa Industrial Co. signed an agreement to establish a joint-venture company in Zhejiang Province, China.
JFE Steel Corporation (JFE) announced that on 15 May, 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) 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 welded (ERW) pipes and cold drawn steel pipes, targeting mainly automotive parts makers.
By leveraging JFE's and 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, JFE expects demand for automotive steel pipes to expand steadily.
By leveraging JFE's and 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, JFE expects demand for automotive steel pipes to expand steadily.
