Marubeni- Itochu Steel Expands Investment to 40B Yen in F2011

Marubeni-Itochu Steel plans to increase business investment by 1.5-2 times to 30-40 billion yen mainly for overseas market in fiscal 2011 ending in March 2012 compared with the previous fiscal year. The firm plans to expand steel tube sales in the U.S.A. and steel sheet processing business in Asia for next 10 years. Since Japanese manufacturing industry and steel makers are accelerating overseas businesses, Marubeni-Itochu Steel tries to enhance functions as a trading house and services for business partners as well as cultivate new markets in emerging countries.

The firm increased investment to 20 billion yen in fiscal 2010 from 3.5 billion yen in fiscal 2009. Mr. Kenichiro Ushino, president of Marubeni-Itochu Steel, explained the firm targets to gain return profits from trading business and current business investment in fiscal 2011. Total investment is projected at 53.5-6.35 billion yen for the mid-term management plan for fiscal 2009-2011.

As for the steel tube business, the firm enhances sales and processing services for manufacturing industry and energy industry. In Asia, the firm builds up coil centers when Japanese automobile makers maintain expansion of production capacity. The firm aims to response to business partners’ overseas strategies by expansion of highly functional business bases and training of international human resources.

In fiscal 2010, the firm invested aggressively to integrate 2 light steel frame makers in the U.S.A. The firm also established a joint sales company of temporary heavy materials, expanded capacity of a coil center in Thailand, established a steel tube maker and a coil center for magnetic steel sheet in India. In Thailand, the firm invested in a cold rolling mill, TCR, and an electrogalvanized steel sheet maker, TCS, while enhanced steel sheet business in Southeast Asia.