Metal One Opens Russia Subsidiary

Japanese major steel trading firm, Metal One Corporation announced on Monday the firm reorganized an office in Moscow into local subsidiary. The subsidiary targets trading expansion in Russia and other countries in Commonwealth of Independent States (CIS). With the subsidiary, the subsidiaries cover all BRICs countries including China, India, and Brazil.

The Russian office launched the operation in March as the local subsidiary with 70 million rubles of capital. The office has 12 persons including local employees. The incorporation enabled the office to start trading in local currency, domestic trading, credit trading and stock sales in Russia. The subsidiary tries to increase trading of high grade steel products including automotive steel and steel pipe mainly for gas field through cooperation with Metal One’s parent companies, Mitsubishi Corporation and Sojitz Corporation to follow economic growth in Russia. The subsidiary sees potential steel processing business in Russia.

Russia’s gross domestic product increases by around 4% every year due to increasing foreign currency revenue from oil and gas export. The steel consumption increased by 7.5% to around 52 million tonnes in CIS in 2011 from 2010. Russian demand of high grade steel would increase especially for energy development and consumer durable goods when Japanese and other countries’ automobile makers are building transplants. The demand would increase also for construction for large projects including Sochi Olympic game in 2014 and World Cup soccer game in 2018.