JFE Steel, Marubeni-Itochu Steel and Metal One Corporation agreed with China Petroleum Material & Equipment Corporation (CPMEC) to extend the joint venture contract of Bohai NKK Drill Pipe for another 10 years. The joint venture adds a production line to increase the drill pipe output capacity from 18,000 tonnes per year to 30,000 tonnes by July-September 2009 for 120 million yuan. The joint venture started operation in February 1997. The firm processes high valued seamless tube into drill pipe supplying for China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (SINOPEC) and other Chinese buyers. The shareholders also agreed to revise the share. CPMEC increases the share from 38% to 50.4% while Japanese shareholders reduce the share from 62% to 49.6%. JFE Steel reduces the share from 32.6% to 26.1% while Marubeni-Itochu Steel reduces the share from 19.6% to 15.7% and Metal One reduces the share from 9.8% to 7.8%.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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