Nippon Steel and Hanwa Invest for Malaysian Electrogalvanizing Maker

Nippon Steel and Hanwa Co. announced on Wednesday both companies acquired the shares in E-Galv Steel Industries, Malaysian electrogalvanizing steel sheet maker, 10% by Nippon Steel and 15% by Hanwa. Nippon Steel and Hanwa aim to follow large demand for electrogalvanizing steel sheet in Malaysia where many Japanese appliance makers’ factories exist for flat televisions or audio components. Both companies also eye the increase of cold rolled coil export. E-Galv Steel Industries will be renamed to Nippon E-Galv Steel.

E-Galv is a subsidiary of Tatt Giap Group. Tatt Giap Group operates coil centers and sitnaless steel processors while covers production of cold finished steel bars and electrogalvanizing steel sheets. E-Galv was established in January 2006 with 25 million Ringgits capital fund. E-Galv introduced a new electrogalvanizing line with capacity at 150,000 tonnes per year and started the operation in February 2009. The actual output is estimated at approximately 14,000 tonnes in 2009.

Tatt Giap Group, Nippon Steel and Hanwa have had business conections for long years. They started talking on this investment in July 2009 and singed a contract on December 9th. Nippon Steel and Hanwa acquire total 25% issued stocks of E-Galv from Tatt Giap Steel Center, a subsidiary of the Group. Nippon Steel invests 6.6 million Ringgits while Hanwa 9.9 million Ringgits.

Nippon Steel and Hanwa plan to improve E-Galv’s facilities and increase the actual output to 150,000 tonnes per year early. Nippon Steel will supply cold rolled coil to E-Galv as much as 50% or more of E-Galv’s consumption.

Nippon Steel invested in Safar Steel of South Africa in December 2008 and acquired PT Pelat Timah Nusantra of Indonesia in November 2009 along its global strategy. Hanwa established coil centers in USA in August 2009 and in Indonesia in October 2009.