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| JFE Shoji Trade Corporation Acquires 5% Equity in Yantai Dong Hai Steel Strip Co., Ltd. of China |
2010.03.23
JFE Shoji Trade Corporation
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JFE Shoji Trade Corporation on March 23, 2010 announced a formal agreement with Yantai Dong Hai Steel Strip Co., Ltd., cold-rolled steel sheet manufacturer under Yantai North Steel Group of Shandong Province in China, under which it has obtained an approximately 5% equity share in the company.
JFE Shoji Trade has developed an extremely close tie with the Yantai North Steel Group through the supply of JFE Steel's hot-rolled and cold-rolled steel sheet. The Yantai North Steel Group produces and sells cold-rolled and galvanized steel sheet to customers manufacturing building components. In addition to expanding its performance in existing sectors, the group is also advancing into market segments including farming vehicles, home appliance components and other emerging growth areas. The goal is to double its annual production capacity of steel sheet from the present 400,000 tons to 800,000 tons by 2011.
This equity agreement stems from the shared ambitions of the Yantai North Steel Group, now seeking a stable supply of high-quality steel sheet to meet the rising demand anticipated in the Chinese market, and JFE Shoji Trade which is mounting a redoubled effort to match overseas demand.
The signing ceremony was held on March 19 at a hotel in Yantai City with over 60 persons in attendance. JFE Shoji Trade was represented by current General Manager, Steel Overseas Division (at the time)Hidehiko Ogawa and General Manager, Sheet & Strip Overseas Dept.(at the time) Itsuji Araki while Yantai Dong Hai Steel Strip was represented by President Gong. Additionally, Deputy Mayor of Yantai City and the other distinguished guests watched on with the keen enthusiasm. The large scale of the celebration underscored the strong level of local interest and hope this agreement holds for the community.
JFE Shoji Trade will be using this equity investment to further expand its business relations with the Yantai North Steel Group, while moving to ensure a sustained and stable supply of hot-rolled and cold-rolled steel sheet for the JFE Group to help solidly address the robust demand for steel products in China. |
| Signing the agreement are General Manager, Steel Overseas Division (at the time)Hidehiko Ogawa of JFE Shoji Trade Corporation left and President Gong of Yantai Dong Hai Steel Strip Co., Ltd. |
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| [Outline of Yantai Dong Hai Steel Strip Co., Ltd.] |
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| Location |
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Yantai, Shandong Province, China |
| President |
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Gong Dong Hai
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| Capital |
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30 million U.S. dollars |
| Capital Composition |
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Northern Iron and Steel 75%, Hong Kong funds 25% |
| Main Product |
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Cold-rolled sheets |
| Production Volume |
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300,000 tons (FY 2008) |
| Sales |
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1.8 billion yuan (FY 2008) |
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