JFE Steel Buyers 8% Share in SUNSCO for More Hot Coil Supply

JFE Steel announced on Tuesday the firm purchased 8% share in Sun Steel Joint Stock (SUNSCO) of Vietnam, which is galvanizing steel and pipe making subsidiary of Maruichi Steel Tube, from Maruichi Steel Tube. JFE Steel tries to secure stable hot rolled flat steel buyers while the Vietnamese maker tries to secure stable supply source.

With the share sales to JFE Steel, Maruichi Steel Tube’s share in SUNSCO decreased to 64.29%.JFE Steel started the hot rolled flat steel supply to SUNSCO in 1999 and shipped around 100,000 tonnes in 2009. JFE Steel will increase the supply volume to meet higher requirement by SUNSCO under expansion.

SUNSCO has a cold rolling mill, a galvanizing line, a color coating line, a bar mill, 7 pipe making lines and 11 stainless pipe making lines at the plant near Ho Chi Minh. The firm launches 16 inches pipe mill with 10,000 tonnes of monthly output capacity in May 2010. The firm also launches new pipe mill with 3,000 tonnes of output capacity at Hanoi plant. The firm plans to sell around 200,000 tonnes of products compared with around 150,000 tonnes in 2009.