On October 12, Japanese steelmaker Nisshin Steel announced its decision to make an additional investment of approximately five billion yen ($61.16 million) and maintain its 30 percent share in Bahru Stainless in Malaysia, its joint venture (JV) with Spanish stainless steel producer Acerinox for manufacturing and sales of cold rolled stainless steel, which is now under construction. The new contribution is made in response to the capital increase associated with the second phase expansion plan of the venture.
Bahru Stainless is currently proceeding with its first phase of the project, aiming to launch commercial production in 2011. It has decided on its second phase expansion plan, determined to establish its stainless steel business in the Southeast Asian market which
holds a promising growth potential.
Under the second phase expansion plan, the venture aims to construct facilities geared to produce value-added stainless steel in anticipation of future needs for greater sophistication and higher quality, and to commence operations in 2013.
Nisshin Steel holds 30 percent of Bahru Stainless, while Acerinox holds 67 percent and three percent share is controlled by Japan's Metal One Corporation. In the first phase of the project, the annual production capacity will be 240,000 metric tons, including 180,000 metric tons of cold rolling capacity, while in the second phase, the production capacity is planned to reach 400,000 metric tons, combined with the first phase production.