Hanwa Activates Investment in Domestic and Overseas Steel Service Businesses

Hanwa Corporation, Japanese major independent steel dealer, activates investment to strengthen domestic and overseas steel business network in fiscal 2011 started in April, the second year of its mid-term management plan. As for the domestic business, the firm plans to increase sales bases while to acquire processing companies or steel dealers. At overseas, the firm aims to cultivate emerging markets by investment in local re-rollers and dealers. Mr. Hironari Furukawa, Hanwa’s new president, explained the firm eyes “resonance” with customers and steel makers by deeper cooperation with them. Mr. Furukawa said Hanwa projects to establish high-function business network and raise its presence in domestic and overseas steel markets.

In Japan, Hanwa tries to widen trading with small-middle class steel users. The firm already opened new 3 sales bases in North Japan this month while eyes additional establishment in other areas. The firm bought a domestic plate processor and a steel dealer in 2010. The firm mulls next acquisition of other plate processors and steel dealers this year. Hanwa’s sales and profits are mostly consisted of domestic business. The firm utilizes new business sites and cultivates new demand.

At overseas, Hanwa plans investment in local re-rollers, pipe makers or steel dealers in China and Southeast Asia. Hanwa aims to provide local services for Japanese integrated steel makers those which are aggressively establishing offshore plants in recent years.

Hanwa also eyes new investment for raw material business. The firm has already concluded partnership with Samancor, the world major raw material supplier, for chrome business. Hanwa examines new investment in other elements than chrome, including nickel business in Philippines. The firm also plans to build up global recycling business of titanium and stainless scrap.