JFE Steel Forms Alliance with Malaysian Cold Rolling Maker

JFE Steel announced on Friday the firm concluded an agreement of a comprehensive alliance with Micron Steel, Malaysian cold rolling maker. JFE Steel took 3% stake of Micron Steel at approximately 100 million yen until February 3rd. JFE Steel will triple hot rolled sheet supply to 300,000 tonnes per year to Micron Steel and support Micron’s growth to expand the production and improve the product quality. JFE Steel aims to follow the demand growth in Malaysia.

JFE Steel has supplied hot rolled sheet to Micron at 100,000 tonnes per year and presented technology support for automotive cold sheet production for 2008-2009. JFE Steel will extend technical cooperation for cold rolled sheet applied to electronic galvanized sheet of automobiles.

Micron expanded its production capacity to 260,000 tonnes per year at the end of 2009 from previous 180,000 tonnes. The firm plans to introduce an additional cold rolling mill and increase the capacity to approximately 500,000 tonnes. Micron started the product supply for electronic galvanized sheets adopted to electric appliances. The firm also aims to expand the sales related to automobiles.

Micron sells cold rolled sheet to Malaysian domestic market with around 15% shares. The firm represents the third position among local 4 domestic makers while Micron is the only supplier of high value added products.