Nichia Steel Establishes Galvanizing Steel Wire Maker in China

Nichia Steel, Japanese major galvanized steel wire maker, announced on Friday the firm establishes joint galvanized steel wire maker in Tianjin, China. Nichia Steel invests at 51% of joint maker’s capital fund. Chinese steel wire maker invests at 49%. The capital fund is 75 million yuan or about 900 million yen. Joint maker is established in October 2011 and starts production on August 2012, which is first factory as Nichia Steel in China.

Nichia Steel placed expanding Chinese market as important strategy market and had been research for establishment of local plant when Japanese demand is downward trend for steel wire, and decided establishment of joint company to produce galvanized steel wire in Tianjin where has enough infrastructure for the business. The firm decided by board meeting in June and arrived at agreement with Chinese partner.

Chinese partner is major steel wire maker in Tianjin, which produces processes and sells metal products and galvanizing steel wire. The firm7s capital fund is 300 million yuan or about3.6 billion yen.

Nichia Steel set up Beijing office in 2005, and searches market, gathers intelligence and imports galvanized steel wire.