Mitsui & Co. Expands Steel Sheet Processing Capacity in Asia

Mitsui & Co., Japanese major general trader, plans to expand steel sheet processing capacities at overseas to follow car market growth in emerging countries. In China, the firm examines to increase steel sheet processing sites under the existent joint venture with Bao Steel. In Thailand, the firm plans capacity expansion of a coil center currently in full operation. In the U.S.A., the firm aims to increase steel sheet processing bases in cooperation with Nucor, the U.S. largest electric furnace steel maker. Mistui targets global consolidated net profit at 30 billion yen per year in fiscal 2014 ending in March 2015.

Mitsui established NuMit, a steel service center in the U.S.A., as a fifty-fifty joint venture with Nucor in March 2010. The steel sheet processing capacity is 3.5 million tonnes per year. Mitsui eyes the increase of NuMit’s sites along car production recovery in the U.S.A. and Mexico. Mitsui also aims to enhance steel sheet processing business in Latin America in cooperation with Nucor.

In China, Shanghai Bao-Mit Steel Distribution, a joint company between Bao Steel and Mitsui, operates 11 steel sheet processing sites with total processing capacity at 2.5 million tonnes per year. The joint company is the largest steel sheet processor in China. Mitsui plans to increase the processing sites to follow car production growth in the country.

In Thailand, car production is expected to hit the record high in 2010 and reach 2 million units several years later. Mitsui plans capacity expansion of Bangkok Coil Center and supply system enhancement in cooperation with Bangkok Eastern Coil Center, a joint venture with Nippon Steel Trading.

Mitsui’s global consolidated net profit is estimated at 11 billion yen per year for fiscal 2010 ending in March 2011.