JV in China from Nippon Steel and Sumitomo Metal

JV in China from Nippon Steel and Sumitomo Metal

According to recent reports from the industry, Japanese Nippon Steel Corp and Sumitomo Metal Ind are going to form a joint venture in Guangzhou, China to supply ordinary and stainless steel pipes to the auto and auto part companies in the area. This venture, which will be the first tie up of both companies outside Japan, will be built for Yen 900 million (almost $8.3 million) and will have a capacity of around 1'000-1'500 tons per month. Currently, Sumitomo Pipe&Tube Co, a unit of Sumitomo Metal, owns 60% and Sumitomo Corp %40 of the joint venture. Construction will be carried out by the aforecited companies. Nippon Steel's share in the venture will be determined within 2-3 months. Unit is scheduled to become operational by September this year.