JFE Steel Leases Right to Use HDG JV for Dofasco
JFE Steel announced on Thursday it agreed to lease
right to use all
capacity of 50/50 joint venture, DNN Galvanizing for Dofasco of Canada
supplying high grade cold rolled sheet for the line. JFE can generate
lease revenue and sell material sheet steel in addition to traditional
dividend from the JV. The new agreement is part of effort for JFE to
establish global supply chain for automobile improving supply capacity
for North America as long as profitability.
The JV changes the name to DJ Galvanizing located Windsor, Ontario of
Canada with around 400,000 tonnes of annual capacity. JFE leases 50% of
line time of the JV or annual 20 tonnes to Dofasco for long-term under
the new agreement allowing Dofasco to operate 100% of the capacity
instead of 50/50 with JFEfs subsidiary National Steel, which sold
major asset to US Steel.
JFE will also provide high grade wide and special cold full hard sheet,
which Dofasco cannot produce, for the line when the materials are
needed.
 JFE
Steel
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