Nisshin Steel to Further Invest in Acerinox Joint Venture
10/15/2010 - Nisshin Steel has decided to make an additional investment of approximately 5 billion yen and maintain its 30% share in Bahru Stainless (Johor, Malaysia), its joint venture with Acerinox that is now under construction for manufacturing and sales of cold-rolled stainless steel.
Nisshin Steel has decided to make an additional investment of approximately 5 billion yen and maintain its 30% share in Bahru Stainless (Johor, Malaysia), its joint venture with Acerinox (Spain) that is now under construction for manufacturing and sales of cold-rolled stainless steel.
Acerinox holds a 67% share in Bahru Stainless, and Metal One Corp. has a 3% stake.
The new contribution is in response to the capital increase associated with the second-phase expansion plan of the venture. Bahru Stainless is currently proceeding with its first phase of the project, aiming to launch commercial production in 2011.
Equipment in the first phase includes one cold rolling mill, one annealing and pickling line, and ancillary equipment. Production capacity will be 240,000 tonnes per year (including 180,000 tonnes per year cold-rolling capacity).
Under the second-phase expansion plan, the venture plans to construct facilities geared to producing value-added stainless steel in anticipation of future needs, commencing operations in 2013. Second-phase equipment will include one cold rolling facility, one annealing and pickling line, and ancillary equipment. Capacity will be 400,000 tonnes per year combined with the first-phase production.
Nisshin Steel has been promoting stainless steel projects on a global basis with Acerinox as its partner. The company says it is positioning Bahru Stainless as its base in the ASEAN market where growth in stainless steel demand is expected.
