Indonesia Nippon Steel Pipe (INP), a group company of Japan's largest steelmaker Nippon Steel, in view of the expected increase in demand for steel pipe meeting environmental regulations on gas emissions for two-wheeled and four-wheeled vehicles in the ASEAN region and India, has decided to increase its production capacity by building another plant at a site adjacent to the existing plant. INP is a 95 percent-owned subsidiary of Thailand-based pipe producer Siam Nippon Steel Pipe Co. Ltd., in which Nippon Steel has a 60.5 percent stake.
In order to supply high-grade pipes including exhaust system stainless pipes, INP and Japanese metal company Sumitomo Metal Pipe & Tube Corporation, a subsidiary of Sumitomo Metal Industries, Ltd., will combine advanced technology held by each.
Specifically, a new company to be established by Sumitomo Pipe & Tube and Sumitomo Corporation (74.8 percent shareholding by Sumitomo Pipe & Tube; 25.2 percent by Sumitomo) will subscribe for 3,100 new shares worth Yen 300 million (US$3.18 million) to be issued by INP, giving Sumitomo a 26.7 percent stake in the new plant.