Mitsui Corp to Establish Steel Sheet Processing Center in Russia

Mitsui Corporation announced on Tuesday the firm concluded an agreement contract to establish a steel sheet processing center for automobile in cooperation with Severstal, Russian major steel maker, near Sankt Peterburg, Russia. Mitsui Corp constructs a processing plant with capacity at 170,000 tonnes per year in mid 2013. This is the first step as Japanese general trading house to launch steel processing business in Russia. Mitsui Corp aims to follow expanding local demand by collaboration with local steel maker which is a leading maker of automotive steel sheet in Russia.

The joint company will be established with 970 million ruble capital fund in Vsevolozhsk, Leningrad, 75% controlled by Severstal and 25% by Mitsui Corp. One blanking press, one slitter and one leveler will be installed at the beginning.

Mitsui Corp provides operative and sales know-how to the joint company since the trader has over 60 steel sheet processing bases around the world, combined with stable supply capacity and technology of Severstal. Mitsui Corp has cooperated with Bao Steel and Wuhan Steel in China as well as New Core and US Steel in the U.S.A. for steel processing business. Severstal is the fifth collaborative company at overseas for Mitsui Corp.

Car sales in Russia are expected to reach 3 million sets in 2016, which would become the seventh largest car market in the world. Overseas automakers and component makers are recently opening productive sites in the northwest area of Russia. Russian government appreciates local procurement of parts and materials. Mitsui Corp expects for the demand growth for local steel processing.