Maruichi Steel Tube Buys 22% Share in Large Square Pipe Maker

Maruichi Steel Tube announced on Wednesday the firm purchases 22% share of Seikei Column, which is Japanese top maker of press making large diameter square steel pipe, from Mitsui & Co. and JFE Steel for around 1.54 billion yen. Seikei Column builds new plant with monthly 3,000 tonnes of output capacity in Osaka for around 3.3 billion yen to serve strong demand in western Japan. Maruichi Steel Tube can provide larger sized square pipe for large scale building. Maruichi Steel Tube builds new plant building with 10,000 square meters of floor space at Sakai plant in Osaka to lease Seikei Column. Seikei Column sets production facilities in the plant to start operation in April 2009 making large diameter square pipe with up to 8000 millimeters diameter and with flat steel provided from JFE Steel. Seikei Column expands the output capacity to total 10,000 tonnes per month including existing plant in Sano, Tochigi. Maruichi Steel Tube makes roll forming square pipe with up to 19 millimeters thick and 400 mm diameter while Seikei Column makes press making square pipe with 400-1,000 mm diameter. Maruichi Steel Tube can provide the larger sized square pipe for larger building construction. Mitsui & Co. controls 70% of Seikei Column with 200 million yen of capital with 30% share by JFE Steel. With Maruichi Steel Tube’ participation, Mitsui & Co. has 51% of the share and JFE Steel has 27%.