Kobe Steel’s China-based steel wire company to increase capital

Japanese steelmaker Kobe Steel has announced that Shinko Wire Company, Ltd. and Suncall Corporation will take equity stakes in its wholly owned steel wire company in China, namely, Kobelco Spring Wire (Foshan) Co., Ltd. (KSW).
 
Kobe Steel's subsidiary Kobelco (China) Holding Co., Ltd at present owns 100 percent of KSW, while, with the capital increase, Kobelco (China) Holding will own 50 percent, while Shinko Wire and Suncall will hold 25 percent each. The share transfer is expected to be completed within this month.
 
KSW was established in January 2012 in Foshan, Guangdong Province to manufacture and sell steel wire for high-quality springs and is scheduled to go into production in February 2013.
 
The two new partners will contribute an additional JPY 650 million ($7.8 million) to increase the capital of KSW to JPY 1.3 billion ($15.6 million), doubling the amount of the original JPY 650 million invested by Kobelco (China) Holding.