The Japanese Sumitomo Metal Industries Ltd. and Taiwanese China Steel are planning to expand their joint venture to China.
SteelOrbis reported that, in May Sumitomo and Taiwan's China Steel made an agreement to set up joint venture in Japan to supply steel slabs to China Steel by borrowing the facility from Sumitomo's Wakayama, while one of the two blast furnaces of Wakayama Works is relined. Under the scope of the agreement Sumitomo would have the chance to reline its blast furnace and China Steel would have a continuous slab source, moreover Sumitomo would supply the Taiwanese company with an advanced technology to produce high-end steel products.
Currently, both companies are negotiating on joint steel supply and conduction of technology operations in China, where steel market is growing fast.