JFE STEEL TAKES 8% INTEREST IN VIETNAMESE STEEL PIPE MAKER

Japan's JFE Steel Corp. said Tuesday that it has obtained an 8 per cent stake in Vietnam-based steel pipe maker Sun Steel Joint Stock Co., with an eye toward boosting exports.

The JFE Holdings Inc. (TSE:5411) steelmaking unit has purchased 16.64 million shares in Sun Steel from Maruichi Steel Tube Ltd. (TSE:5463) for an undisclosed sum. Maruichi held a 72.29 per cent interest in Sun Steel prior to the share sale. Sun Steel is a joint venture between Japanese, Taiwanese and other companies.

JFE Steel has been selling hot-rolled steel sheet for pipemaking to Sun Steel since 1999. Sales to the firm currently stand at about 100,000 tons a year.

JFE Steel has been looking to increase sales of steel sheet, while Sun Steel has been aiming to secure stable and high-quality supplies amid a shortage in Asia.

Sun Steel manufactures and sells pipes for use in construction and automobiles in Indochina. The company plans to raise sales to 200,000 tons this year from roughly 150,000 tons in 2009.