Maruichi Steel Tube to Buy US Pipe Maker

Maruichi Steel Tube announced on Friday the firm agreed to purchase 60% Chicago based steel pipe maker, Leavitt Tube Company through 100% subsidiary based in Delaware. Maruichi Steel Tube purchases the share from 14 individual shareholders by May for US$ 93 million. The firm tries to improve the steel pipe supply mainly for southern part of USA through the joint venture with Sumitomo Corporation, which has 40% share in Leavitt Tube. Maruichi Steel Tube has make structural steel pipe in California through Maruichi American Corporation since 1980. The firm has studied potential business in Midwest and southern part of USA deciding to purchase Leavitt Tube. Leavitt Tube established in 1956 has plants in Chicago and Jackson, Mississippi. The firm with 251 employees makes structural steel pipe with up to 10 inches of diameter, high tensile structural steel pipe and other steel pipe items. Leavitt Tube posted US$ 16 million of net profit with US$ 171 million of sales in 2007. The firm has US$ 68 million tonnes of asset and US$ 48 million of net asset. The firm will be subsidiary of Maruichi Steel Tube.