JFE Galvanizing & Coating to Start Offshore Production during F2012-2014

JFE Galvanizing & Coating, JFE Steel’s subsidiary to manufacture galvanized and colored steel sheets, aims to launch overseas production during the next three-year management term starting in April 2012. The company has examined new plant construction mainly in Southeast Asia and advanced local market surveys. At the same time, the firm tries to establish an integrated production system for end products in order to cultivate new demand and business fields during three years.

JFE Galvanizing & Coating forecasts domestic new housing starts at around 800,000 per year for fiscal 2012-2014. The firm recognizes domestic market would shrink in the medium term. The firm projects new survival strategies to commence offshore productive operation as well as to widen products’ applications such for interior materials.

The company eyes plant construction in Southeast Asia, India or the Middle East. In F2011, the firm established a joint venture company in Vietnam, named JAM Vietnam. JAM Vietnam has operated for about a year and gathered much information on local markets. JFE Galvanizing & Coating regards JAM Vietnam as the first step to launch an offshore plant.