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Japanese trio to acquire VN steel pipe firm
Japan's Toyota Tsusho Corporation, JFE Steel Corporation and Maruichi Steel Tube Ltd have announced their joint acquisition of Vietnamese spiral steel pipe manufacturer Jeong An Vina Co., Ltd for about 1.3 billion yen (US$16 million).
The newly acquired company will be capitalised at $3.1 million. JFE and Maruichi will hold a 35-per-cent stake, while Toyota Motor Corp's metals-focused trading affiliate, Toyota Tsusho, will hold the rest, according to a press release.
The Dong Nai-based company, currently a wholly-owned subsidiary of South Korea's Jeong An Steel, has an annual production capacity of 50,000 tonnes and posted a total revenue of $10.9 million in 2009.
After the acquisition, the company's name will be changed and it will start manufacturing steel pipe pile and steel pipe sheet pile in Viet Nam with the aim to take advantage of growing demand for the construction steel pipe in Viet Nam and Southeast Asia.
"The demand for construction steel pipe is increasing rapidly, especially in Viet Nam, due to a wave of newly launched projects for ports, railways and other major infrastructure developments," the company said.
After obtaining necessary Government approvals and licences, the company will begin supplying products under its new structure. It eventually expects to raise shipments from the current 10,000 tonnes per year to 50,000 tonnes.
vietnamnews
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