Nisshin Steel to Invest 5 Billion Yen for 2nd Phase of Malaysian JV

Nisshin Steel announced on Tuesday the firm decided to invest around 5 billion yen additionally in Bahru Stainless in Malaysia, which is stainless cold rolling joint venture with Acerinox of Spain, to keep the 30% shareholding in the venture. The venture, which starts the first phase in mid-2011, invests the second phase of the project starting in 2013 to make higher quality products.

The joint venture builds a cold rolling mill, an annealing and pickling line and other related facilities as the around US$ 370 million of first phase. The output capacity increases from annual 240,000 tonnes including 180,000 tonnes of cold rolling capacity to 400,000 tonnes through the around US$ 310 million second phase including a cold rolling mill and an annealing and pickling line.

Acerinox’s chairman Rafael Naranjo Olmedo said to a reporter of Japan Metal Bulletin last week in Tokyo the firm will add hot rolling mill and steel making shop to develop the joint venture to integrated stainless steel plant with 1 million tonnes of annual output capacity. He said the firm tries to expand the partnership with Nisshin Steel through the joint venture to follow growing demand in Asia.