JFE Shoji Trade Corp to Raise Steel Sheet Process Capacity in Indonesia

JFE Shoji Trade Corporation, JFE Group’s trading house, announced on Tuesday the firm raises steel processing capacity at JFE Shoji Steel Indonesia (JSSI), to 2.3 times at 70,000 tonnes per year by introduction of a large-size slitter. The new slitter will start operation in spring of 2012 to meet the local demand growth for thicker steel sheet. JFE Shoji Trade Corporation will implement approximately 500 million yen capital expenditure including expansion of the existing plant building. JSSI’s processing volume has recently increased mainly for electrical steel sheet. JSSI follows the local demand growth for steel sheet processing, including hot rolled steel sheet applied to automobiles.

JSSI mainly processes electrical steel sheet, which accounts for about 50% of total processing volume, as well as cold rolled steel sheet and surface treated steel sheet. The company supplies processed steel sheet for the local plants of Japanese, Korean and Indonesian capitals. The steel sheet is used for automotive motors and other electrical applications. The demand has increased along the country’s rapid economy growth. JSSI’s processing capacity was short against the high demand increase.

JSSI’s plant will be expanded by 3,500 square meters to 8,960 square meters. The expanded plant will hold two large-size slitters, one small-size slitter, eleven high-speed press machines, one swing shear line, one shearing machine and one mini-size leveler.

JSSI was established near Jakarta in May 1995 and started production and sales operations in January 1996. The capital fund is US$ 7 million, 88.6% shared by JFE Shoji Trade Corporation, 6.4% by Kawarin Enterprise and 5% by JFE Electrical Steel. The current processing capacity is 30,000 tonnes per year with 141 employees. The annual revenue was US$ 43.75 million in 2010.

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