October 31, 2017
JFE Steel Corporation
Meranti Steel Pte. Ltd.
JFE Shoji Trade Corporation
Marubeni-Itochu Steel Inc.
Hanwa Co., Ltd.
Joint Venture to Launch Hot-dip Galvanized and Colored Flat Steel Products
Business for the Building and Construction Sector in Myanmar
— JFE Steel, Meranti Steel, JFE Shoji Trade, Marubeni-Itochu Steel, and Hanwa —
Tokyo — JFE Steel Corporation (JFE Steel), Meranti Steel Pte. Ltd. (Meranti), JFE Shoji Trade Corporation (JFE Shoji), Marubeni-Itochu Steel Inc. (MISI), and Hanwa Co., Ltd. (Hanwa) announced today their agreement to form a joint venture to produce and sell hot-dip galvanized and colored flat steel products for the building and construction sector in Myanmar. The five companies will establish a manufacturing and sales company, JFE Meranti Myanmar Co., Ltd., in Myanmar through a Singapore-based holding company, JFE Meranti Myanmar Holding Pte. Ltd. The joint venture will begin constructing a plant after obtaining approval from relevant authorities, aiming to launch operations in 2020. Total investment in the project will be approximately 85 million US dollars.
Since democratization of Myanmar in 2011, economic development has progressed dramatically. The demand is rapidly expanding for flat steel products for building and construction, such as roofs, walls and structures. Currently, most of these steel materials have to be imported, but the need is expected to rise for locally produced high-quality products supported with technical services and short lead times. The demand will increase as foreign companies increasingly enter Myanmar and build manufacturing plants, and as customer preferences shift to higher-end products as the standard of living rises. The new joint venture aims to promptly launch its lines for hot-dip galvanization and coating to capture the increasing demand for high-quality thin-plate building materials. This will be the first project in Myanmar focused on manufacturing high-grade galvanized flat steel products.
Meranti is a venture company with abundant knowledge of flat steel products for building and construction, for which it has conducted detailed studies and marketing in Myanmar. The new joint venture plans to maximize customer satisfaction by leveraging the manufacturing technology and quality-control know-how of JFE Steel and the overseas networks of JFE Shoji, MISI and Hanwa.
JFE Engineering, a member of the JFE Group, is already conducting a wide range of infrastructure-related businesses in Myanmar. JFE now looks forward to contributing to further economic development in Myanmar with its flat steel products for the country’s building and construction sector.
JFE Meranti Myanmar Holding Pte. Ltd.
Total investment: 85 million US dollars
Ownership: JFE Steel 35%, Meranti 20%, JFE Shoji 15%, MISI 15% and Hanwa 15%
Business: Holding company
JFE Meranti Myanmar Co., Ltd.
Headquarters (planned): Thilawa Special Economic Zone in southern Yangon, Myanmar
Ownership: Wholly owned subsidiary of JFE Meranti Myanmar Holding Pte. Ltd.
Business: Manufacture and sale of flat steel products for building and construction sector
Facilities: Hot-dip galvanizing line (180,000 tons annual capacity)
Operation: From 2020
About Meranti Steel Pte. Ltd.
Representative: Sebastian Langendorf
Business: Development of flat steel products business for building and construction sector
About JFE Steel
JFE Steel Corporation, one of the world’s leading integrated steel producers, was established through the consolidation of NKK Corporation and Kawasaki Steel Corporation in 2003. The company operates several steelworks in Japan and numerous branch offices and affiliates throughout the world. JFE Steel leverages world-class technologies and know-how to produce a wide range of products based on its “Only One, Number One” strategy of focusing on unique and best-in-class products. The company reported consolidated sales of 2,349 billion yen and consolidated crude steel output of 30.41 million tons in the fiscal year ended March 2017. For more information, please visit www.jfe-steel.co.jp/en.
For more information about this release, please contact:
JFE Steel Corporation: www.jfe-steel.co.jp/cgi-bin/contact.cgi
Meranti Steel Pte. Ltd.: www.merantisteel.com/contact
JFE Shoji Trade Corporation: https://www.jfe-shoji.co.jp/en/contact/
Marubeni-Itochu Steel Inc.: https://www.benichu.com/english/contact/
Hanwa Co. Ltd.: https://www.hanwa.co.jp/en/contact/