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Nippon Steel, WISCO Formally Establish Tinplate Joint Venture

11/07/2011 - Nippon Steel and Wuhan Iron and Steel Group have formally established WINSteel, a new joint venture that will manufacture and sell tinplate in Wuhan City, Hubei Province.

Nippon Steel Corp. and Wuhan lron and Steel Group Corporation (WISCO) have formally established WISCO‐Nippon Steel Tinplate Co., Ltd. (WINSteel). Announced by the partners in April of this year, the new joint venture will focus on the manufacture and sale of tinplate in Wuhan City, Hubei Province.
 
The new joint venture, located in Wuhan City, Hubei Province, China, will feature a 400,000 tonnes/year continuous annealing and processing line and a 200,000 tonnes/year electrolytic tinning line. Products will include tinplate and tin mill black plate. The facility, which is scheduled to start operation in FY2013, represents a total investment of approximately RMB 1350 million (approximately JFY 23,000 million, with 50% equity ratio for Nippon Steel and 50% equity ratio for MSCO.
 
The partners are developing the joint venture in an atmosphere of growing international demand for tinplate for food cans, beverage cans, and other containers driven by population increases and rising living standards, particularly in new emerging nations. In China's mid‐western area — the main target area for the joint venture — tinplate demand is predicted to continue to gather strength in the future.
 
Through the new joint venture, Nippon Steel aims to combine its world-leading technologies with WISCO's solid business base in China. From this base in Wuhan City, the company says it will endeavor to capitalize on the growing demand for tinplate, thus also contributing to the economic development of China through the provision of tinplate products.
 
WISCO, which has top‐level scales of production and manufacturing technology in China, has long maintained amicable relations with Nippon Steel ever since the construction of WISCO's hot‐rolling mill. At the time, the project was symbolic of the restoration of diplomatic relations between Japan and China.
 
The partners celebrated establishment of the joint venture, which was preceded by completion of procedural steps on both sides, on November 3 with an establishment ceremony attended by top management from both parties.
 
Construction of the joint venture's plant is scheduled to start in the early months of next year on the premises of WISCO's steelworks located in Wuhan City, with the completion date scheduled for fisca1 2013.