Kyoei Steel and Godo Steel Tie Up for Rebar Business

Japanese major electric furnace makers, Godo Steel and Kyoei Steel announced on Tuesday they achieved agreement to have shares of 3% each other. They will acquire the interest by the ended of December 2007. Both companies reorganized Nakayama Steel Products which proceeded corporate reorganization in 1999, in tandem and are operating Nakayama Steel Products on a conjoint basis. Both companies aims stabilization of Japanese rebar market, which will response international increasing competition and changing of steel demand, and which will build up business fundamental.Rebar market price is firm in higher level for several years. However, the market price fluctuated before that by makers’ excessive competition. Makers’ profits have been got worth due to increased ferrous scrap after last autumn. In the future, rebar import from china or South Korea may increase. Corporate acquisition by overseas enterprise is concerned. Each Japanese maker has common view a stabilization of rebar market will help stability of makers’ management.Kyoei Steel is top rebar maker in Japan. Godo Steel is the forth. Their crossholding of shares is expected to advance stabilization of rebar market in Japan.Kyoei Steel produces saleable steel products, rebar, angle, channel and flat bar at 2.15 million tonnes in Hirakata, Yamaguchi, Nagoya works in fiscal 2006 at the ended of March 2007. Godo Steel produces saleable steel products, H-beam, large and mid shaped steel, rail, structural steel bar, rebar and wire rod, in Osaka, Himeji and Funabashi works, which sold the products at 1.62 million tonnes in fiscal 2006.