Kanzen Tetsu and Arcelor form a joint venture

Kanzen Tetsu and Arcelor form a joint venture

Asia's largest stainless steel producer FACB Industries Inc Bhd's subsidiary Kanzen Tetsu Sdn Bhd has agreed with world's largest steelmaker Arcelor's subsidiary Arcelor Stainless International to establish a stainless steel shearing and slitting facility in Shah Alam, Selangor. For the establishment of the new joint venture company which will be named as Kanzen Stainless Processors Sdn Bhd (KSP), Kanzen Tetsu and Arcelor will invest Ringgits 26.6 million (approx. $7 million). KSP, 70% of which will be owned by Kanzen Tetsu and 30% by Arcelor Stainless International, will be mainly involved in processing and shearing of stainless coils into a wide range of products including plates, sheets and strips for both local and ASEAN (Association of South East Asian Nations) markets. The facility will have a total annual output of 24'000 tons from shearing process and 95'000 tons from slitting operations. The slitting operation will start in February while shearing process will come on stream in June.