Taiwan Steelmaker to Buy into Sumitomo Metal’s Thai Unit

Tokyo, Aug. 9 (Jiji Press)–Sumitomo Metal Industries Ltd. said Thursday that it will sell a 15 pct equity stake in its Thai electromagnetic steel processing unit to China Steel Corp. of Taiwan.

The stake will be transferred to China Steel Global Trading Corp., a company owned 99.99 pct by China Steel. The value of the deal was not disclosed.

Following the move, Sumitomo Metal’s stake in the Thai unit, Thai Sumilox Co., will fall to 52 pct from 67 pct.

Thai Sumilox receives about 40,000 tons of electromagnetic steel sheets a year from Sumitomo Metal and process them for sale to Japanese electronics makers operating in the Southeast Asian nation. The processed steel sheets are used for compressors for electric appliances.

Based on the capital alliance, Thai Sumilox will procure electromagnetic steel sheets from China Steel as well as part of its effort to meet growing demand.

Sumitomo Metal and China Steel jointly operate a blast furnace in the western Japan city of Wakayama.END

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