JFE Steel to Open Offices in Vietnam, Dubai, Mumbai

JFE Steel announced on Thursday the firm opens 3 offshore offices. The firm opens Vietnamese office in April and Dubai and Mumbai offices in June. With the new office, the firm expands the local marketing activity while the firm tries to develop offshore market by expanding headquarters’ export teams and sending long term business trips when emerging countries and offshore market increases the importance recently. The firm tries to follow offshore demand with finer mesh through total 17 offshore offices including 12 in Asia after the first office in Vietnam and Middle East and the second office in India.

Vietnamese steel demand increases strongly in Association of Southeast Asian Nations even after 12.16 million tonnes of Vietnamese demand was second high after Thailand in ASEAN in 2009. The firm expects the demand increases for construction materials in infrastructure construction and steel materials for appliances makers. The new office improves cooperation with Ho Chi Minh based offices of related companies and alliance partners including Perstima (Vietnam), Sun Steel Joint Stock Company and J-Spiral Steel Pipe while the new office follows construction demand for major projects and needs from appliances makers.

Dubai office targets Middle and Near East, Pakistan and Africa by utilizing the advantage including transportation convenience. The firm expects steel demand increases from 43.1 million tonnes in 2008 to 58 million tonnes in 2020 in Middle and Near East. The new office improves the relationship with existing customers including pipe makers and rerollers while the office develops energy industry and new long term customers.

The first office in Mumbai as Japanese integrated steel maker covers western part of India and develops Indian market as New Delhi office established in 2008. Indian steel demand will increase sharply even after 59.36 million tonnes of the demand was third largest in the world in 2009. The new office improves relationship with the strategic alliance partner of JSW Steel while the office improves the service for local users and expands the sales.

JFE Steel tries to develop offshore market and new offshore customers as strategic task when Japanese demand is slow and JFE Steel’s major export destination of South Korea increases the domestic supply and decreases the import after the major expansion including integrated steel plant by Hyundai Steel. JFE Steel’s export rate increases to 50% in value in January-March for the first time in the history. The firm tries to develop stable offshore buyers as part of the strategy through the first attempt to open 3 offices at same timing.