Sumitomo Metals & China Steel Corp. jv plans
A new joint venture is planned to be established between Sumitomo Metal Industries Ltd of Japan and China Steel Corp. of Taiwan. The plan constitutes the new joint venture to be established in Japan by borrowing the facility from Sumitomo's Wakayama plant to produce slab steel for the supply of China Steel Corp. Through this tie-up, Sumitomo Metals will have the chance to better the declining Wakayama Plant operating capacity and China Steel Corp. will have a stable sourcing of slabs as the company does not have the capacity to produce same and having depended on the imports for years. This tie-up deal is seen as a way of utilizing the excess production capacity. The two companies are aiming to reach an agreement through the end of this fiscal year.