Taiwanese, Japanese Steel Makers Teaming Up to Tap Sales in China

Taipei, Feb. 16, 2006 (CENS)--Taiwan' s steel makers, including China Steel Corp. (CSC) and Chang Yi Steel Corp., have teamed up with Japanese concerns, including Maruichi Steel Tube Ltd., Metal One and Toyota Trading, to set up a joint venture called Maruichi Foshan Co. in mainland China to tap that market.

Capitalized at US$15 million, the new company will begin operations sometime in April this year. Focusing on steel slitting and sales of steel pipes, the new company will target the automobile plants located in southern Chinese region.

CSC said the investment project is the first of its cooperation initiatives with downstream firms to build global distribution channels since the beginning of this year. Such a cooperation mode will be extended to central and northern China, Southeast Asia, Europe and the United States.

The establishment of such international distribution channel, said CSC, is aimed at helping domestic iron and steel manufacturers sharpen their competitive edge in the international arena.

CSC is working hard to counter the turbulence of the steel industry that is witnessing a new wave of merger and acquisition globally. With the establishment of global distribution channels, CSC will be able to boost its international competitiveness as it is capable of producing high-grade steel products at competitive prices.