Kyoei Steel to List on Tokyo and Osaka Exchanges

Osaka based electric furnace steel maker, Kyoei Steel will list the stock on Tokyo Stock Exchange and Osaka Securities Exchange on December 19 after the firm got approval from the exchange on Wednesday. The firm finally realizes the listing after the firm tried to fail to list itself in Japan and the firm tried to fail to list former subsidiary, Ameristeel in USA. The domestic top small bar maker has Hirakata and Osaka plants in Osaka, Yamaguchi plant and Nagoya plant along with the subsidiary, Kanto Steel in Ibaraki. The one of the domestic top 3 electric furnace steel maker expects 23 billion yen of consolidated recurring profit and 15.5 billion yen of net profit with 153 billion yen of sales for the year to March 2007. The big steel could have chance to list earlier. The late Koichi Takashima, who was former president of the firm, started to prepare for the listing after the firm allocated 20 billion yen of share for third party and increased the capital to 10.2 billion yen in 1991. However, the firm gave up listing when rebar and steel price plunged and the sales volume dropped to damage the financial position along with the change of rule for listing. The former subsidiary, Florida Steel, which Kyoei Steel acquired in 1992 and changed the name of to Ameristeel, also couldn’t list on New York Stock Exchange in December 1997 just before the listing. However, electric furnace steels around Osaka changed the structure after 2000 to improve the profitability along with favorable market condition. Kyoei Steel improved the profitability and financial position. The firm targets the listing under the mid-term plan succeeding the goal after the approval from Tokyo and Osaka exchanges.