JFE Steel foresees growing demand for high grade steel sheet in ASEAN market

Japanese steelmaker JFE Steel has announced that it has entered into a partnership agreement with Thailand-based Sahaviriya Steel Industries Public Company Limited (SSI), the largest steel sheet producer in Southeast Asia, and Japanese trading company Marubeni-Itochu Steel Inc. (MISI).
 
Accordingly, JFE and MISI will invest $25 million each to acquire new SSI shares. The companies will increase their stake in the existing joint venture company, Thai Cold Rolled Steel Sheet Public Company Limited, by buying shares from SSI. After completion of the deal, SSI and JFE will each hold 36.04 percent of the shares in the JV, while MISI will have 25.10 percent.
 
JFE will also provide technical assistance for the joint venture to produce stable supplies of cold rolled steel sheets to meet the growing demand of the Thai automotive industry. The three companies foresee growing demand in the ASEAN market, especially in high grade steel sheet products for the automobile industry.