JFE Shoji Trade announced on Tuesday the firm purchases 5% share in Donghai Steel Strip, which is cold rolled flat steel maker of North Steel Group. JFE Shoji pays around 135 million yen to the group company of North Steel Group. JFE Shoji tries to secure stable buyer of hot rolled flat steel and cold rolled flat steel while the firm improves the connection with North Steel Group for business growth in China.
North Steel Group has Donghai Steel Strip and other galvanizing steel maker. North Steel Group has 75% share in Donghai Steel Strip with 25% share by Hong Kong’s companies including North Steel Group’s company. The firm produced around 300,000 tonnes of cold rolled steel with 1.8 billion yuan of sales in 2008. The firm, which mainly sells the products to construction and appliances, tries to expand the business to automobile and appliances parts application. The firm launches new capacity to double the output capacity to annual 800,000 tonnes by end of 2010. Through the tie-up with JFE Shoji Trade, the firm tries to secure high grade steel.Japan Steel Scrap Composite Prices (Sangyo Press)
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