Mitsui, Toyota Tsusho and Bao Steel to Build Coil Center in China

Mitsui & Co., Toyota Tsusho Corporation and Bao Steel will establish a joint steel sheet processing center in Guangzhou, Guangdong Province of China. The JV will process, stock and sell steel sheet for Guangzhou Toyota Motor. Mitsui has cooperated with Bao Steel in establishment of joint steel sheet processing centers all around China. This is the first cooperation with Toyota Tsusho in order to supply steel sheet to Toyota Motor in China. Mitsui continues to build up steel supply system for automotive industry in China.Mitsui, Toyota Tsusho and Bao Steel will establish a joint company by May 2007 with capital fund of 27.5 million yuan or approximately 430 million yen. Bao Steel will hold 51% controlling share for the JV with 24.5% by Mitsui and the rest by Toyota Tsusho. Total investment will account for 50.44 million yuan or approximately 780 million yen. The JV will introduce a high precision slitter for automotive steel sheet of 0.5-4.0 millimeters thick with processing capacity at 5,000 tonnes per month. The JV will start operation in April 2008 with monthly production at about 3,000 tonnes.Mitsui has 11 processing centers with Bao Steel in China and the new JV becomes 12th. Mitsui regards South China, including Guangzhou, as a most important strategic area, where Mitsui has established coil centers near the local sites of Japanese 3 big automakers and affiliated component makers.