Kyoei Steel, Kishiwada Steel Agree for Cross Shareholding

Osaka based concrete reinforcing steel bar makers, Kyoei Steel and Kishiwada Steel announced on Tuesday they agreed for partnership and cross shareholding. Kyoei Steel buys 23,790 shares of Kishiwada Steel and Kishiwada Steel purchases 84,000 shares of Kyoei Steel. They try to improve the profitability through the tie-up and the partnership could stabilize local market under slower demand. Local rebar market is estimated to be monthly 150,000 tonnes. The demand is peaked out in longer term with lower public demand though the demand increases temporally due to major building constructions by private sector. Japanese largest rebar maker of Kyoei Steel produces monthly 35,000-37,000 tonnes of rebar in Hirakata plant in Osaka. The largest rebar maker around Osaka of Kishiwada Steel produces 45,000-47,000 tonnes. The smaller sized rebar makers in Osaka decided the partnership preparing for smaller demand.