Nippon Steel Establishes Subsidiary for Manufacturing and Selling Steel Pipes in Indonesia

Nippon Steel Corporation announced on Thursday that SIAM NIPPON STEEL PIPE CO., LTD. (SNP), which is the joint venture for production and distribution of carbon steel for machine structure (STKM) in Thailand, would establish the subsidiary for manufacturing and selling steel pipes in Indonesia. The total investment is about 2.2 billion yen. The capital is US$8.5 million. SNP and TOSHIDA hold 95% and 5% of shares of the subsidiary respectively. Indonesia Nippon Steel Pipe, the new firm in the nation, is scheduled to start commercial production in January 2007. The equipment of heat-treating furnace and cropper, etc. will be introduced in the firm’s plant. The production capacity will be 1,200 tonnes per month. The new company will produce the steel pipes for vehicle as high precision and quality for the Japanese manufacturers in the nation. In particular, it will manufacture the products to meet the demand for two-wheeled motor vehicles. There will be about 140 employees. SNP takes into consideration increase of steel pipe production capacity in both Thailand and Indonesia. Further, the firm also considers the product supply in India in the future.