Kotobuki Industries and POSCO Establish Joint Steel Ingot Plant in Japan

Japanese major cast steel maker, Kotobuki Industries announced on Tuesday the firm established joint steel ingot plant for forging with POSCO, South Korean steel maker. They will construct the plant which produces at 150,000 tonnes per year in Kitakyusyu and will start the operation in March 2009. POSCO will take off steel ingot at 120,000 tonnes per year from new joint plant through the subsidiary over 12 years, and will sell it for South Korean market. Kotobuki Industries will construct cast steel plant in near side of joint plant and will supply hot metal for ingot to joint ingot plant.

They established joint company, Asia Special Steel, in the ended of July in Shinjuku, Tokyo. The capital fund of joint company is 3 billion yen. Kotobuki Industries takes the share of 82%. Posteel, POSCO’s subsidiary, takes 12%. Joint company is expected to turn over at 15 billion yen per year.

Kotobuki Industries will construct new cast steel plant in near side of joint plant, will start the operation in March 2009. New cast steel plant supplies the material to joint plant producing large cast steel product at 8,400 tonnes per year. New cast steel plant is expected to turn over at 4 billion yen per year.