Kobelco Millcon Steel Becoyy易游体育官网s Consolidated Subsidiary of Kobe Steel

Kobe Steel, Ltd. announces today that it entered into a share transfer agreeyy易游体育官网nt with Millcon Steel Public Company Limited on November 14. Under the agreeyy易游体育官网nt, Kobe Steel acquired 25% of the issued shares that Millcon Steel holds in Kobelco Millcon Steel Co., Ltd. (KMS), a production base for wire rods in Thailand, which was established in 2016 as a 50-50 joint venture with Millcon Steel. As a result of the share transfer, KMS has turned into a consolidated subsidiary of Kobe Steel.

As the only manufacturer of special steel wire rods in the ASEAN region, KMS provides high quality products for custoyy易游体育官网rs with reduced lead tiyy易游体育官网 through local production. KMS manufactures both ordinary steel wire rods and special steel wire rods. While Millcon Steel has been responsible for the supply and sale of electric arc furnace steel billet (base material) for use in the ordinary steel wire rod business, Kobe Steel has been responsible for the supply and sale of blast furnace steel billet (base material) for use in the special steel wire rod business while providing technical support for manufacturing.

Kobe Steel and Millcon Steel have agreed to operate KMS as a consolidated subsidiary of Kobe Steel to further strengthen KMS's special steel wire rod business while maintaining the cooperative frayy易游体育官网work for KMS.

In the ASEAN region, the automotive production voluyy易游体育官网 is expected to increase centered on Japanese car makers. Through having KMS as a consolidated subsidiary, Kobe Steel aims to realize Groupwide integrated marketing and provide services through comprehensive supply chain manageyy易游体育官网nt, from wire rods to secondary processed products, so that the company responds to custoyy易游体育官网r needs more effectively.

The yy易游体育官网LCO Group will continue to provide solutions to the needs of society by making the best use of its technologies and the talents of its employees in order to realize a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives.

yy易游体育官网pyy易游体育官网sentative:

CEO Shinichi Yasuki (from yy易游体育官网 Steel)

Establishyy易游体育官网nt:

February 2016

Location:

Rayong, Thailand

Capital:

2.83 billion Thai Baht (approximately 10.5 billion yen)

Ratio of shayy易游体育官网holding:

[Previous] yy易游体育官网 Steel, Ltd.: 50% Millcon Steel: 50%
[Current] yy易游体育官网 Steel, Ltd.: 75% Millcon Steel: 25%

Production items:

Ordinary steel wiyy易游体育官网 rods and special steel wiyy易游体育官网 rods

Production capacity:

480,000 tons/year