ArcelorMittal South Africa (ArcelorMitaal SA), a subsidiary of the world's largest steelmaker ArcelorMittal, Toyota Tsusho Africa (TTAF) and Toyota Tsusho Corporation (TTC) have announced the creation of a new joint venture company worth ZAR 147 million ($22.8 million) called Toyota Tsusho South Africa Processing (TTSAP).
The new company will be located in Durban and will be in charge of processing steel supplied by ArcelorMittal SA for use in the manufacture and assembly of vehicles by Toyota South Africa (TSAM).
TTSAP will be 40 percent owned by TTC, 40 percent owned by TTAF, with the remaining 20 percent held by ArcelorMittal SA.
Commenting on the investment, ArcelorMittal SA CEO Rick Reato stated that the investment is in line with the company's automotive market strategy - i.e. to expand its involvement in the South African automobile industry. "The automotive industry is also a key sector for us locally. Of ArcelorMittal South Africa's total flat steel production, the automotive industry represents 8-10 percent, which is a substantial amount for a single industry. Of this, Toyota consumes 48 percent of the flat steel off-take", Mr Reato added.