Metal One Advances Coil Center Business Optimization in Japan

Metal One, Japanese major steel dealer, announced on Thursday the firm establishes a new operating company, Metal One Service Center Holdings (MOSHD) on November 1 to control existent group coil centers, Isuzu Corporation and Suzuyasu Corporation. Metal One transfers shares of two coil centers to MOSHD. Mr. Takashi Suzuki, president of Isuzu Corp, will assume the post of MOSHD’s president.

Metal One has conducted optimization and enhancement of coil center business along its mid-term management plan. Domestic steel demand is recently decreasing to 60 million tonnes pear year. On the other hand, Japanese coil centers’ capacity is said surplus by 30% against the demand. MOSHD should integrate two coil centers’ processing equipments and productive bases for higher competitiveness.

Isuzu Corp is controlled by Metal One with 60% shares and by Nippon Steel with 30% shares. Isuzu Corp’s annual process volume was 1.04 million tonnes in fiscal 2009 ended in March 2010. The firm operates 10 processing bases in Japan.

Suzuyasu covers coil center business and long product sales, 85% controlled by Metal One, 7% by Nippon Steel and 7% by Kobe Steel. The annual process volume of steel sheets and long products totaled 320,000 tonnes in fiscal 2009. The firm operates 7 processing bases in Japan.

MOSHD’s capital fund is 80 million yen, totally invested by Metal One.