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Nippon Steel to Enter Tinplate Joint Venture with Wuhan Steel

04/25/2011 - Nippon Steel Corp. and Wuhan Iron and Steel (Group) Corp. have agreed to establish a joint venture for the manufacture and sale of tinplate in China.

Nippon Steel Corp. and Wuhan Iron and Steel (Group) Corp. have agreed to establish a joint venture for the manufacture and sale of tinplate in China.
 
The new 50-50 joint venture — Wisco-Nippon Steel Tinplate Co., Ltd. — will be located in Wuhan City, Hubei Province, China. It will supply tinplate to meet rising demand for such applications as food cans, beverage cans, and other containers typical of the population increases and rising living standards in new emerging nations. In China’s mid-western area (the main target area of this project), tinplate demand is predicted to gather strength in the future.
 
In continuing support of its growing role as a global player, Nippon Steel is entering the venture with the intention to combine Wisco’s solid business base in China with Nippon Steel’s world-class technology. From this base in Wuhan City, the venture will work to supply to the growing demand for tinplate, thus also contributing to the economic development of China through the provision of tinplate products.
 
Nippon Steel has long maintained amicable cooperative relations with Wisco, which has top-level scales of production and manufacturing technology in China, particularly since the construction of the Wisco’s hot-rolling mill—a project symbolic of the restoration of diplomatic relations between Japan and China. Taking aim at mutual benefit and equality, the two companies have worked together, having now obtained approval from China’s governmental authorities to establish this joint venture. Formal procedures necessary for the establishment of this joint venture will soon be taken.
 
The new company, when established, will be another Nippon Steel base for local production and marketing, thus helping to expand the company’s global tinplate business while also expanding its business development in this rapidly growing nation.
 
Built for an investment of approximately RMB1,850 million (approximately JPY24,000 million), the new venture will feature a 400,000 tonne/year continuous annealing and processing and a 200,000 tonne/year electrolytic tinning line, and products will include tinplate and tin mill black plate.
 
The new facility is scheduled to start operation in the summer of 2013.