Dowa Holdings Starts Heat Treatment Equipment JV in Jiangsu

Dowa Holdings announced on Tuesday the firm starts a joint venture to produce heat treatment equipment in Jiangsu Province of China in cooperation with a heat treatment business company in Taiwan. Dowa Holdings accelerates the service supply to Japanese and local makers in China by establishment of a production site in the country where strong economic growth continues.

Dowa Holding’s subsidiary, Dowa Thermotech holds 70% equity in the JV while the partner, Jun-En Enterprise Corporation holds 30% equity. The JV will be established within May with capital fund of 1.1 billion yen and start operation in March 2011.

Jun-En Enterprise Corp produces metal meshes for industrial and transporting uses, and the manufacturing equipment for these metal meshes. The firm presently operates 4 subsidiaries in China and has joint venture experiences with Japanese companies.

Jun-En Enterprise Corp has know-how to produce and operate heat treatment furnaces while Dowa Group has productive technology of batch furnaces and continuous furnaces. Organic synergies are expected for the JV. The JV will also cover carburizing heat treatment and surface treatment businesses in future.