Regency Steel Asia of Singapore Aims Higher Net Profit in F2010

Regency Steel Asia, a steel sales company headed in Singapore and mainly controlled by Mitsui & Co., Japanese general trading company, aims to enlarge profits in fiscal 2010 ending in March 2011 by flexible and efficient inventory management of steel plates, shaped steels and steel tubes for oil wells. Regency Steel Asia eyes to raise the sales ratio of oil well steel tube to 20% from present 10% in a medium term and plays a core roll as Mitsui’s strategic subsidiary in Asia.

Regency Steel Asia was established in 2003 to wholesale steel plate, shaped steel and steel tube for oil well. The total inventory is currently approximately 130,000 tonnes and the sales volume is 25,000-30,000 tonnes per month. The capital fund is US$ 4 million, shared by Mitsui with 92.5% equity. The employee number is about 70.

Steel demand remarkably dropped in Singapore, Malaysia and Indonesia in and after the second half of fiscal 2008 due to global economy deterioration. As a result, Regency Steel Asia posted net loss at approximately 700 million yen in fiscal 2008. The firm integrated 2 stock yards in Singapore and improved product mix at warehouses. The firm reduced operating cost at US$ 4 million per year and gained net profit at 300 million yen in fiscal 2009.

Mr. Satoshi Osawa, Regency Steel Asia’s president said the firm tries to improve management efficiency more and ensure higher profit in fiscal 2010 than in fiscal 2009. The firm plans to increase the sales of plate and shaped steel for constructions of subways or buildings in Singapore and surrounding countries. As to oil well tubes, the firm aims to raise the sales ratio to 20% in fiscal 2010.