JFE Steel and Mycron Steel ink pact for strategic collaboration

JFE Steel Corporation and Mycron Steel Berhad, Malaysia’s major cold rolled steel sheet manufacturer, have signed an agreement for strategic collaboration, and JFE Steel has acquired 3% of Mycron Steel’s outstanding equity.

JFE Steel will supply Mycron Steel with high quality hot rolled coil and related technical assistance for the production of high quality cold rolled sheet for stable markets such as automobiles and electric appliances, which Mycron Steel is now targeting to increase its presence as the demand for high quality steel is growing in Malaysia, where manufacturers are increasingly seeking local sources of high-quality industrial materials.

The two companies have enjoyed commercial relations over years, during which time JFE Steel has provided Mycron Steel with technical assistance for the manufacture of automotive grade steel products and also hot rolled coil which is turned into cold rolled sheet. The collaboration agreement and equity investment will enable the two companies to deepen this relationship for enhanced mutual benefit.

Mycron Steel produces and supplies cold-rolled steel sheet for automobiles, drum cans, construction materials and coil centers. The company is strengthening sales in the automobile industry and plans to start supplying substrate to electric galvanizing mills for electric appliances. Mycron Steel expanded its annual capacity from 180,000 tons to 260,000 tonnes in 2009, and a new cold reduction mill expected to come on line in around 2012 will further elevate annual capacity to 500,000 tonnes.