JFE Shoji Takes 8% Shares in US Advanced Steel Recovery

JFE Shoji Trade Corporation, JFE Group’s trading house, announced on Thursday the company acquired 8% shares in US major ferrous scrap dealer, Advanced Steel Recovery (ASR), headed in California. JFE Shoji can increase ferrous scrap procurement in the USA through ASR and advance tripartite trading of ferrous scrap to follow the demand expansion in Asia.

ASR mainly trades ferrous scrap generated at California Steel Industries of the USA. JFE Shoji has had the trading relationship with ASR while strengthens the tie-up by the share acquisition.

ASR is globally known as a top trader of container shipping ferrous scrap. ASR has patent for its automated containerization system, FASTek, which realizes less damage on containers and real-time weighing of ferrous scrap on berth. One container can be processed within 5 minutes.

JFE Shoji trades approximately 3 million tonnes of ferrous scrap per year, 2 million tonnes in Japan and 1 million tonnes by export/import. The company plans to increase the trading volume to 3.5 million tonnes per year along with its 3-year management plan for fiscal 2012-2014 to keep stable material supply to JFE Group’s domestic plants and to widen export/import trading including tripartite shipping.