Maruichi Steel Tube to Raise Interest in Indonesian JV

Maruichi Steel Tube announced on Friday the firm acquires additional share in PT. Indonesia Steel Tube Works and makes the firm equity method affiliate. After the transaction, Metal One Corporation controls 60% of the joint venture with 20% share by Maruichi Steel Tube and 20% by local investor. Maruichi Steel Tube tries to expand the support for further growth of the joint venture through the additional investment. Maruichi Steel Tube purchases 2.9 million shares or 6.7% of outstanding share of the joint venture from Metal One fro 330 million yen by December 25 increasing the share from 13.3% to 20%. The firm expects share valuation gain through the transaction and will announce the detail after settlement. The joint venture has Semarang and Jakarta plants with monthly 8,000 tonnes of pipe making capacity and 8 million units of cutting capacity. Maruichi Steel Tube joined the venture in 1971 and has supported the operation in technically.