Yodogawa Steel Works to Invest 15 Billion yen in China, Thailand

Yodogawa Steel Works announced on Friday the firm expands offshore flat steel operation for around 15 billion yen. The firm establishes Chinese subsidiary as joint venture with Taiwanese subsidiary, Sheng Yu Steel to start the Chinese first coated steel making operation. Yodogawa Steel Works increases capital of Thai subsidiary, PCM Processing (Thailand) to start colored flat steel making.

Yodogawa Steel Works establishes Chinese subsidiary with around US$ 80 million of capital in Hefei economic and technological development zone of Anhui in July. The firm controls 60% of the subsidiary with 40% share by Sheng Yu Steel. The new plant has a continuous galvanizing line with around 240,000 tonnes of annual output capacity and 2 continuous color coating lines with around 120,000 tonnes of capacity.

Yodogawa Steel Works invests 12-13 billion yen for the new plant in China to start operation in April 2013. The new plant hires around 180 of local staff. The firm expects the new company will post around 22 billion yen of sales in fiscal 2015 ending March 2016 or 3 years after the operation start.

PCM Processing (Thailand), which processes colored flat steel including pre-coated metal for appliances makers and power coating in Amatanakorn Industrial Estate of Chonburi, plans to add around 2.57 billion yen color coating line through the capital increase. The plant secures around 23,000 square meters of land in the estate for the new plant to start operation in January 2013. The firm targets around 6 billion yen of annual sales in fiscal 2015.

PCM Processing (Thailand) increases the capital from around 856 million yen to around 2.366 billion yen. The owners will decide the capital increase scheme soon while Yodogawa Steel Works now controls 58.7% of the Thai plant with 26.1% share by Hanwa Co., 10.1% share by Marubeni-Itochu Steel and 5.1% share by Metal One.

Yodogawa Steel Works group sells monthly 6,000-8,000 tonnes of coated steel in China. The firm decided the new plant in China to expand the business in growing appliances market especially for white goods. The group tries to expand the business with cost competitiveness in Thailand to follow growing demand in the country and Southeast Asian countries.