JFE Shoji Trade Corp Expands Resource Business in F2011

JFE Shoji Trade Corporation, Japanese major steel dealer and a subsidiary of JFE Steel, aims to expand the resource business in fiscal 2011 ending in March 2012, the final year of JFE Shoji Trade’s 3-year management plan. The firm promotes business invests mainly for Australian coal mines while increases supply of hard coking coal and coal for PCI (pulverized coal injection) to JFE Steel as well as intermediate trade of thermal coal. The firm plans approximately 5 billion yen investment for the resource business in fiscal 2011. The firm enhances functions as a core dealer of JFE Group through acquisition of competent resource businesses such as ferroalloy.

JFE Steel is trying to increase own resource rate in order to procure raw materials stably and reduce purchase costs for iron ore and coal. JFE Shoji Trade has promoted strategic investment for coal mines to diversify the supply sources.

JFE Shoji Trade is developing new supply sources of raw materials and expanding exports and imports with emerging countries as well as intermediate trade. Mr. Mikio Fukushima, JFE Shoji Trade’s president, suggested at a press conference on April 27 that the firm seeks additional investment into new competent resource businesses.

In fiscal 2010, the firm acquired all shares of Republic, Australian coal miner. Republic can produce coal for PCI and thermal coal at maximum 3.5 million tonnes per year at 2 coal mines in Australia.