Marubeni-Itochu Steel Buys Shares in TCR, TCS

Marubeni-Itochu Steel announced on Monday the firm purchases share in Thai makers of cold rolled flat steel and electrogalvanizing steel. The firm purchases 22.2% share in Thai Cold Rolled Steel Sheet Public (TCR) from Marubeni Corporation and 14.9% share in Thai Coated Steel Sheet (TCS) from Marubeni Corporation and Itochu Corporation. Marubeni-Itochu Steel sends 3 directors for the each company to participate in the management of the companies. The firm tries to follow growing demand in Southeast Asia by establishing integrated supply chain of flat steel through further tie-up with JFE Steel, which is shareholder of TCR and TCS.

Thai major hot rolled flat steel maker, Sahaviriya Steel Industries has share in TCR and TCS and the hot coil maker supplies material band for TCR. Marubeni-Itochu Steel has long trading relationship with Sahaviriya Steel Industries. Marubeni-Itochu Steel tries to expand the Thai business by increasing cooperation with Sahaviriya Steel Industries, which started integrated steel business by purchasing UK based slab making integrated steel works, Teesside Cast Products from Tata Steel of India earlier the year.

Marubeni-Itochu Steel tries to improve the operation of TCR and TCS by participating in the management of the boards while Marubeni-Itochu Steel keeps supplying materials and selling the products for TCR and TCS as before. The major trading company tries to seek synergy between the firm’s Thai coil center and other operations and TCR and TCS.

TCR started the operation with annual 1 million tonnes of output capacity in 1997. Sahaviriya Steel Industries controls 50.15% of TCR with 1.07 billion baht of capital. JFE Steel has 22.41% and Marubeni-Itochu Steel has 22.2% share in TCR while JFE Shoji Trade Corporation and Toyota Tsusho Corporation have each 1.57% share and Sumitomo Corporation has 1.25% share in TCR.

TCS started the operation in 1994 as sole electrogalvanizing steel maker in Thailand. JFE Steel controls 81.4% of TCS with annual 180,000 tonnes of output capacity and 2.207 billion baht of capital while Marubeni-Itochu Steel has 14.9% and Sahaviriya Steel Industries has 3.7% share in TCS.