Sumitomo Metals Cooperates Steel Sheet Processing with CSC in Thailand

Sumitomo Metal Industries announced on Thursday the firm will enhance steel sheet processing base in South East Asia by the partnership with China Steel (CSC), Taiwanese biggest steel maker. Sumitomo Metals invests to steel sheet processing plant of CSGT which is CSC’s subsidiary, in Vietnam and CSGT invest to Thai Sumilox which is Sumitomo Metals’ magnetic steel sheet processing plant in Thailand. Sumitomo Metals and CSC established business alliance relating to supply slab from Sumitomo Metals to CSC. The partnership for steel sheet field is the second alliance for them.

The demand for magnetic steel sheet is increasing due to increased production of Japanese consumer-electronics makers in Thailand. Thai Sumilox will expand purchasing root thanks to the cooperation with CSC group. CSC group will hold processing and sales base in Thailand.

CSGT establishes steel sheet processing center in Vietnam on the middle of 2008. Sumitomo Metals will invest this new processing center. Capital fund of Thai Sumilox is 67% of Sumitomo Metals, 28% of Sumitomo Corporation group and 5% of local enterprise. Sumitomo Metals cedes the share of 15% to CSGT in August. CSGT will send off one board member to Thai Sumilox.

Thai Sumilox was established in 1990. The firm’s revenue was at 1.45 billion Bath in 2006. The firm processes magnetic steel sheet at 43,000 tonnes per year by slitter and 300 tonnes by presser for such as compressor of air conditioner.