Yamato Kogyo announced on Thursday the firm contracted asset purchase including United gulf Steel Mill (UGS) with Foulath which is partner in Mid-East. Yamato Kogyo is constructing integrated steel making and rolling plant for H-beam by directed reduced iron system in Bahrain, and responses the demand for shaped steel in Mid-East by combination of UGS and directed reduced iron plant.
Yamato Kogyo established United Sulb Company which is asset transferee company through United Steel Company (Sulb) Bahrain Venture Company WLL which was established by Yamato Kogyo and Forlath in Saudi Arabia, and buys assets of UGS. UGS has plant in Jubail industrial estate in Saudi Arabia which ground-floor area is about 190,000 square meters and plant building area is 18,000 square meters. UGS produces small H-beam, angle, channel. Production capacity is 450,000 tonnes per year. United Steel Company which is joint company by Yamato Kogyo and Forlath, will enhance steelmaking capacity for supply of semi-finished steel to United Sulb Company. Yamato Kogyo will have capacity of directed reduced iron at 1.5 million tonnes per year, steel making at 970,000 tonnes and rolling mill at 1.05 million tonnes. United Sulb Company plans to start production from August.Japan Steel Scrap Composite Prices (Sangyo Press)
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