JFE Galvanizing & Coating Launches First Overseas Plant

Japanese major construction galvanized steel maker, JFE Galvanizing & Coating announced on Friday the firm established steel roofing and siding making joint venture with Japanese processors, Megatech and Asahi Kanamono in Vietnam in March. The joint venture is the first offshore plant for JFE Galvanizing & Coating. The joint venture targets US$ 340 million of sales in 2015.

Megatech controls 57% of the joint venture, Vietnam-Japan Advanced Metal Forming with 24% share by Asahi Kanamono and 19% share by JFE Galvanizing & Coating. They got approval from Vietnamese authority on March 28 for the joint venture with US$ 400,000 of capital.

The joint venture makes and constructs steel siding, roofing and interior material for residential and nonresidential building. The joint venture also sells flat steel products in Vietnam. Megatech sends the president of the joint venture with 6 employees. The joint venture starts its operation in Hai Duong City near Hanoi.

The joint venture has 5 forming machines and 4 processing machines with capability to meet local standard. The joint venture tries to develop Vietnamese nonresidential building market in cooperation with constructors in Vietnam.

Megatech, Asahi Kanamono and JFE Galvanizing & Coating started study for potential joint venture in Vietnam about a year ago. JFE Galvanizing & Coating supports the joint venture mainly by supplying the mother material. The galvanizing steel maker eyes wider offshore activity based on the first step.