JFE Steel to Expand Alliance with Hyundai Steel

JFE Steel said on Monday the firm will expand the alliance with Hyundai Steel of South Korea. They eye apparently technical support for integrated steel operation by JFE Steel to the Korean largest electric furnace steel maker, which constructs integrated steel plant with blast furnace. Hyundai Motor group’s Hyundai Steel eyes smooth start of the unexperienced integrated steel business with support by high valued steel supplier of JFE Steel to supply high valued sheet and plate steel to the group companies. Hyundai Steel builds blast furnaces, hot strip mill, plate mill and other integrated steel facilities at Dangjin plant, which is electric furnace steel plant when the firm acquired. The firm starts blast furnace operation in 2010. The firm already started the downstream of existing hot rolling mill in October 2006 with purchased slab shipping to the group’s Hyundai Hysco to make automotive cold rolled steel and galvanizing steel. JFE Steel already decided to support Hyundai Steel by supplying slab to make high valued hot coil until Hyundai Steel starts upper stream operation of the integrated steel plant. JFE Steel will increase the slab supply to 300,000 tonnes in 2007 from 165,000 tonnes in 2006. JFE Steel said the firm didn’t decide detail and time table for further cooperation with Hyundai Steel including technical support for the integrated operations. However, they apparently target Hyundai Steel’ integrated steel business when JFE Steel said the firm tries to expand the alliance from existing stainless flat steel making technical support and slab supply to Hyundai Steel and comprehensive alliance in automotive flat steel with Hyundai Hysco.