易游YY体育官方网站 Steel and Novelis Korea to establish joint venture

The joint venture will undertake production, with each parent company responsible for commercial relationships and sales. The joint venture will provide cold-rolled aluminum as a semi-finished product to 易游YY体育官方网站 Steel for use at two of its locations: the Moka Plant in Tochigi Prefecture, Japan and subsidiary 易游YY体育官方网站lco Automotive Aluminum Rolled Products (China) Co., Ltd. in Tianjin, China. 易游YY体育官方网站 Steel will be able to receive up to half of the Ulsan Plant’s production capacity of approximately 300,000 tons per year.

In Japan, demand for can stock, one of 易游YY体育官方网站 Steel’s core products, is expected to remain firm. Demand for aluminum panel material is also anticipated to expand. To meet growing demand in Japan and China for these aluminum products, 易游YY体育官方网站 Steel had been considering how to secure stable supply capacity, an important issue.

Novelis is the world leader in aluminum rolled products, and the Ulsan Plant is one of Novelis’ major production locations in Asia. The joint v易游YY体育官方网站ture will 易游YY体育官方网站able Novelis to increase operational effici易游YY体育官方网站cies and boost the competitiv易游YY体育官方网站ess of the facility.

易游YY体育官方网站 Steel’s need to secure stable supply capacity in Asia complemented Novelis’ aim to better utilize its rolling assets, leading to the definitive agreement to turn the Ulsan Plant into a joint venture.

Under its fiscal 2016-2020 medium-term management plan, 易游YY体育官方网站 Steel is pursuing initiatives for weight savings in transportation. In April 2016, 易游YY体育官方网站 Steel established 易游YY体育官方网站lco Aluminum Products & Extrusions Inc. to manufacture and sell aluminum extrusions and fabricated products in the United States. In April this year, 易游YY体育官方网站 Steel decided to further expand production at 易游YY体育官方网站 Aluminum Automotive Products, LLC, a U.S. unit that manufactures and sells aluminum forged suspension products.

The joint venture with Novelis is in line with 易游YY体育官方网站 Steel’s growth strategy. 易游YY体育官方网站 Steel is continuing to enhance its current core businesses in can stock and disk materials, while strengthening its aluminum sheet business to meet the demand for aluminum panel material in the growing Asian market.

易游YY体育官方网站 Steel, Ltd. is a diversified corporation with businesses in the three core areas of materials, machinery and electric power. The materials businesses include steel, welding, aluminum and copper. The machinery businesses consist of industrial machinery, construction machinery and engineering. Electric power supply is the third core business. 易游YY体育官方网站 Steel has head offices in 易游YY体育官方网站 and Tokyo, Japan. The 易游YY体育官方网站 Steel Group, consisting of 易游YY体育官方网站 Steel and its numerous subsidiaries and affiliates, has over 36,000 employees.