Posted on 28 Dec 2020
Japan's Nippon Steel is planning to acquire a majority stake in Thai tinplate producer Siam Tinplate, in line with its overseas expansion strategy and to tap demand growth for food cans in southeast Asia.
Nippon Steel said today it has agreed to acquire shares held by existing investors in Siam Tinplate, increasing its stake in the Thai firm to around 90pc and making it a subsidiary by February next year. Price details were not disclosed. The remaining 10pc stake will be held by Thai firms.
Siam Tinplate is currently owned 71.5pc by Japanese companies, including 15.6pc by Nippon Steel, and 28.5pc by Thai firms. The other Japanese investors include trading firm Sumitomo, steel joint venture Metal One and Nippon Steel's steel trading arm Nittetsu Shoji.
Nippon Steel is planning to reinforce its steel operations in Thailand through co-ordination with NS-SUS, a Thai production base for black plates. The Japanese firm originally invested in Siam Tinplate, which has a production capacity of 140,000 t/yr of tinplate and 120,000 t/yr of tin-free steel, in 1990.
Nippon Steel has been looking to expand internationally as part of its strategy to localise steel production near new overseas markets and weather falling demand in Japan. The company this month formalised an agreement to build a new $775mn electric arc furnace at its US joint venture with Luxembourg-based ArcelorMittal.
Source:Argus
