Japanese steelmaker Kobe Steel Ltd has announced that it has entered into a share transfer agreement with Thailand-based Milcon Steel regarding the 25 percent shares the latter holds in both companies’ joint venture Thailand-based Kobelco Milcon Steel (KMS).
Under the agreement, Kobe Steel has acquired a further 25 percent of shares in KMS, turning it into a consolidated subsidiary of itself.
As the only manufacturer of special steel wire rods in the ASEAN region, KMS provides high quality products for customers with reduced lead times through local production. KMS manufactures both ordinary steel wire rods and special steel wire rods.
Kobe Steel stated that the automotive production volume in the ASEAN region is expected to increase, centered on Japanese car makers. Through having KMS as a consolidated subsidiary, the company aims to realize groupwide integrated marketing.