CSC and Yieh Loong to buy slabs from Sumitomo

CSC and Yieh Loong to buy slabs from Sumitomo

There are rumors in the market that, Taiwan's China Steel Corp (CSC) and Yieh Loong are planning to sign a letter of intent with Sumitomo Metal of Japan covering purchase of 1.8 million tons of slab per annum from the Wakayama plant. Reports mention that Yieh Loong aims to purchase approximately 1.2 million tons and balance 600'000 tons per annum will be taken by the other Taiwanese company CSC. Moreover it is reported that CSC is to form a joint venture with Sumitomo Metals which will start operations by second half of 2003. The aim of the proposed joint venture operation is to re-start Sumitomo's Wakayama plant for future slab sales.