JFE Shoji Trade Corp to Establish Steel Coil Center in Vietnam

JFE Shoji Trade Corporation, Japanese steel trading house in JFE Steel group, will build up steel sheet coil centers at overseas. The firm aims to expand offshore sales when steel demand is increasing at overseas markets and JFE Steel increases the crude steel production. JFE Shoji Trade Corp will establish a coil center for the first time in Vietnam when the demand for appliance is expanding in the country.The new coil center will be established in Ho Chi Minh, Vietnam, to start operation in 2007. JFE Shoji Trade Corp holds 100% share of it. The coil center would process magnetic steel sheet which would represent 60% of all the products, hot-rolled, cold-rolled and zinc coated steel sheet which represent 40%, with equipment such as slitters and levelers. The coil center will supply processed steel sheet mainly to Japanese appliance makers in Vietnam. JFE Shoji Trade Corp prefers Ho Chi Minh, where there is high demand for magnetic steel sheet, to Hanoi. Vietnam is in speculative boom. Japanese companies are setting up operations as the point of demand following from China. Vietnamese gross domestic product (GDP) is US$ 550 per head, one-third of Chinese GDP, one-fifth of Thailand. Demand expansion is expected in Vietnam.