Hanwa Corp Acquires Shares in Malaysian Steel Framer, Eversendai

Hanwa Corporation announced on Thursday the firm acquired 0.5% shares in Eversendai Corporation which is a major engineering company for steel frame of buildings in Malaysia. Hanwa strengthens existing partnership with Eversendai and stably supplies steel products to the company who is expanding the business in Southeast Asia, Middle East and India. Hanwa also announced establishment of two new coil centers in inland area of China. Hanwa eyes other investment and alliance chances at overseas.

Eversendai was established in 1982. The business area mainly covers design and construction works of buildings. There are the processing factories in Malaysia, Middle East and India. The current annual revenue was 760 million ringgits. Hanwa and Eversendai started partnership after Hanwa had supplied Japanese steel products to Eversendai’s Dubai factory. Hanwa plans to increase steel supply to the factory in India where high-rise building constructions are increasing.

Hanwa invested in N-E Galva which is an electrode galvanizing steel sheet maker in Malaysia in late 2009 and has advanced partnership with offshore steel processors such as a re-roller or a steel tube maker. Mr. Hironari Furukawa, president of Hanwa, said the firm considers establishment of overseas steel supply network, cautiously watching Japanese steel makers’ overseas activities.

In China, Hanwa establishes a joint coil center, Champland Hanwa Steel Service, in Wuhan in cooperation with Champland, a local steel dealer. The capital fund is 40 million yuan, 30% investned by Hanwa and 65% by Champland. The CC installs one large slitter and one large leveler with total processing capacity at 70,000 tonnes per year. The CC will start operation in 2Q 2013.

The other CC, Hanwa Steel Service (Jiangxi), is established in Jiangxi by Hanwa’s 100% investment. The capital fund is US$ 5 million. The CC installs one large slitter with processing capacity at 50,000 tonnes per year, starting operation in late 2012.

Hanwa examines additional CC establishment in India and Mexico. As for existent offshore CC, third-phase capacity expansion completed in Thailand and second-phase expansion work is in progress in Indonesia.