Nisshin Steel, Acerinox to Build Stainless Cold Rolling Mill in Malaysia

Nisshin Steel announced on Thursday the firm and Acerinox establish joint venture to make stainless cold rolled steel with 240,000 tonnes of annual output capacity in Malaysia for US$ 320 million starting commercial operation in 2011. They eye the expansion up to 600,000 tonnes of cold rolling mill and the new stainless steel making shop with 1 million tonnes of capacity. Acerinox leads the joint venture with around a third of share by Nisshin Steel. They builds a cold rolling mill and an annealing and pickling facility in Johor Bahru. The output capacity is 180,000 tonnes for cold rolled steel and total 240,000 tonnes including 60,000 tonnes of hot rolled pickling steel. The joint venture purchases hot band mainly from South African plant of Acerinox. Nisshin Steel and Acerinox keep long term cooperative relationship since Nisshin Steel started technical support for Acerinox in 1970. They cooperate for automotive stainless steel pipe supply in North America while they study for Indian stainless cold rolling joint venture. Nisshin Steel also announced on Thursday the firm purchases 35.7% or 2,500 share of Wheeling-Nisshin, which is coated steel making subsidiary in USA, from Wheeling-Pittsburgh Steel for US$ 71.4 million controlling 100% of Wheeling Nisshin. Nisshin Steel tries to expand the coated steel business eyeing expansion of the output capacity.