Japan’s JFE Steel Corporation and Mycron Steel Berhad, Malaysia’s major cold-rolledsteel sheet manufacturer, are to collaborate
The pair signed a strategic agreement and JFE also acquired 3% of Mycron outstanding equity.
JFE will supply Mycron with hot-rolled coil and technical assistance for the production of cold-rolled sheet for markets where Mycron plans to increase its presence, such as automotive and electric appliances.
Steel demand is growing in Malaysia where manufacturers are seeking local sources of industrial materials.
The two companies have enjoyed commercial relations over the years, during which JFE has provided Mycron with technical assistance for the manufacture of automotive grade steel products and also hot rolled coil is turned into cold rolled sheet.
Mycron produces cold-rolled steel sheet for automobiles, drum cans, construction materials and coil centres. It expanded its capacity from 180kt to 260kt/y in 2009, and a new cold reduction mill is expected to come on line in 2012, which will increase capacity to 500kt/y.