Sumitomo Corp Acquires Oresteel Share for Iron Ore Business

Japanese major business house, Sumitomo Corporation announced on Tuesday the firm acquired the share of Oresteel Investment, South African steel material supplier and has the right of Assmang, at 6% additionally at about 4 billion yen. The firm acquired Oresteel’s share of 20% in January. The firm expanded the indirect investment ratio for Assmang to 7.7% from 6%. The firm increased the right of high quality iron ore and chrome ore and will build up the steel material business.The investment ratio of Assmang is 54% of Sacco family which is founding family of Assmang, 26% of Sumitomo, 20% of Old Mutual, South African biggest assurance company due to the additional acquisition by Sumitomo.Assmang produces mainly lump iron ore at 6 million tonnes per year, and will increase the production to 10 million tonnes per year thanks to the operation of new iron ore mine. The firm will more increase the production to 16 million tonnes, and improves the standing of ire ore seaborne trade in the world by high quality iron ore and cost competition power.