Krosaki Harima Drives Global Strategy by TRL Share Acquisition

Japanese major refractory maker, Krosaki Harima Corporation, is driving global business. Krosaki announced on Thursday the firm decided share acquisition in Tata Refractories Limited (TRL), the India’s largest refractory maker. Krosaki targets the sales share increase in Indian market while regards TRL, the new subsidiary, as the export base of low cost products to Japan or the material procurement base.

Annual net sales of Krosaki and TRL totaled 112.3 billion yen in 2010, the fourth position among the world top refractory makers. This is Krosaki’s first investment in India though the firm has already participated in 12 companies in East Asia, 2 companies in North America and 2 companies in Europe. The firm also has 2.42% shares in Magnesita Refratarios, Brazilian major refractory maker which holds the thirdly largest shares in the global market and strong positions in South America and Europe.

In India, Krosaki has driven sales approaches to local steel makers, mainly Tata Steel. However, Krosaki’s market share was only 1% since Krosaki had no local production base and exported refractroies mainly from China. Krosaki is now able to have local production and sales base, the new subsidiary TRL, and raise the market share to 22%.

Meanwhile, TRL has two raw material mines, one of which produces fire clay for refractory at 40,000 tonnes per year. Krosaki expects for stable supply of high grade raw materials through TRL.

Tata Steel, TRL’s parent company, publicly offered TRL’s shares in May 2010 and Krosaki acquired the shares. Krosaki expects TRL could also become the strategic sales base for Southeast Asia, Middle East and Europe.