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JFE Steel, Mycron Steel Agree on Strategic Collaboration
Feb. 9, 2010 JFE Steel Corp. and Mycron Steel Berhad, a Malaysian cold-rolled steel sheet manufacturer, have signed an agreement for strategic collaboration. JFE Steel also has acquired 3% of Mycron Steel’s outstanding equity.
JFE Steel will supply Mycron Steel with high-quality hot-rolled coil and related technical assistance for the production of cold-rolled sheet for markets such as automobiles and electric appliances, which Mycron Steel is now targeting. The demand for high-quality steel is growing in Malaysia, according to JFE Steel.
For years, JFE Steel has provided Mycron Steel with technical assistance for the manufacture of automotive-grade steel products and also hot rolled coil that is turned into cold rolled sheet. The companies believe that the collaboration agreement and equity investment will enable a deeper relationship for enhanced mutual benefit.
Mycron Steel produces and supplies cold-rolled steel sheet for automobiles, drum cans, construction materials, and coil centers. The company is strengthening sales in the automobile industry and plans to start supplying substrate to electric galvanizing mills for electric appliances. Mycron Steel expanded its annual capacity from 180,000 tonnes to 260,000 tonnes in 2009; a new cold reduction mill scheduled to come on line around 2012 is expected to further elevate annual capacity to 500,000 tonnes.