Chinese colored flat steel maker, Suzhou Hesheng Special Material announced on Thursday the firm decided to establish colored steel making joint venture with JFE Steel and JFE Shoji Trade at the board meeting.
Suzhou Hesheng Special Material controls 86% of the joint venture to invest 300 million yuan. The firm tires to shift higher valued products for appliances and construction through the joint venture with Japanese advanced technology. JFE Steel holds 10% share of the joint venture with 100 million yuan of capital while JFE Shoji Trade has 4% share through Shanghai arm. The joint venture makes colored flat steel products including commission based production along with the sales and technical service activity in China and offshore market. Chinese demand of colored flat steel increases for appliances and construction materials while the suppliers’ competition gets severer for pre-coated metal products. Suzhou Hesheng Special Material recognizes the firm has to shift to higher valued products along with lower cost structure in order to survive the competition. The firm tries to develop high valued market through the joint venture by utilizing JFE Steel’s production management knowhow and technology and JFE Shoji Trade’s sales network.M | T | W | T | F | S | S |
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Japan Steel Scrap Composite Prices (Sangyo Press)
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