Nippon Steel Consolidates Cold Rolling Maker in Thailand

Nippon Steel announced on Monday the firm consolidates Siam United Steel, biggest joint cold rolling steel sheet maker in Thailand, for the firm’s subsidiary on December 2006. The firm takes over the interest at 8.4% from Siam Cement, major conglomerate in Thailand, which will have the interest at 44.7%. Nippon Steel will strength cooperation with SUS, and build up competitive power of SUS as core business base in most important area, Thailand. Siam Cement cedes the interest at 14.5% out of 19.5% to existing shareholder. Siam Cement thinks to want to shift management resources to core business. Nippon Steel thinks to want to strength the cooperation with SUS. Both companies share a mutual interest. Both companies didn’t show the amount of assignment. POSCO, the integrated steel maker in South Korea, increased share of stock for SUS to 12.3% by 2.3%. Japanese business houses, Mitsui Corporation, Metal One, Sumitomo Corporation and Nittetsu Shoji, increased their share of stock. Japanese integrated steel makers, JFE Steel, Sumitomo Metal Industry and Kobe Steel didn’t change their share. SUS is the important base to supply high grade steel sheet for automobile or appliance with the demand expansion in South East Asia. However, SUS has issue which the improvement of the profit or elimination of cumulative deficiency. Nippon Steel will strength the support for production, sales or material purchase, which establish stable operating base. SUS started the operation in 1998, which capitalized at 9 billion baths, and which has production capacity at 1 million tonnes per year. SUS purchases hot rolled steel sheet from shareholder such as Nippon Steel, which supply cold rolled steel sheet for automobile or appliance, tin plate maker and building material.