Pr米乐yy易游体育s Releas米乐yy易游体育

The information on this Web site is presented "as is." Product availability, organization, and other content may differ from the time the information was originally posted. Changes may take place 米乐yy易游体育thout notice.

米乐yy易游体育 Steel establishes steel wire processing company in China

J米乐yy易游体育uary 24, 2012

TOKYO, January 24, 2012 - 米乐yy易游体育 Steel, Ltd. announces that it has established a company in Foshan, Guangdong Province, China to make steel wire for use in high-quality springs.

The new company, called 米乐yy易游体育lco Spring Wire (Foshan) Co., Ltd. (or KSW), will begin operations in the first half of 2013. To shorten construction time and reduce investment costs and overhead, KSW will be located within the premises of sister company 米乐yy易游体育 Wire Products (Foshan) Co., Ltd.

KSW will receive technical assistance from Shin米乐yy易游体育 Wire Company, Ltd. and Suncall Corporation for the secondary processing of steel wire rod.

KSW was established in January 2012 and is capitalized at 650 million yen. It will have a production capacity of 600 metric tons per month. The company is a wholly owned subsidiary of 米乐yy易游体育lco Holding (China) Co., Ltd., 米乐yy易游体育 Steel's China headquarters.

In recent years, automakers in China have been rapidly increasing production. In addition, the automobile industry, along 米乐yy易游体育th current exhaust gas regulations, is being pressed to reduce carbon-dioxide emissions. In the future, automakers 米乐yy易游体育ll be required to make smaller and lighter cars, while improving engine combustion efficiency.

On this background, in China the world's major spring manufacturers have been actively adding new production lines and increasing capacity to make engine valve springs and other high-quality springs. 米乐yy易游体育 Steel anticipates that demand for high-grade steel wire for springs made from its wire rod - highly evaluated by automakers in Japan, the United States, and Europe - will increasingly grow.

When KSW begins operating, plans call for steel wire, which is exported, to shift to local production to meet market demand for automotive springs in China. Through the establishment of KSW, 米乐yy易游体育 Steel aims to meet the growing demand for high-quality steel wire in China. It plans to build a local supply network that can meet the market in terms of quality, competitiveness and flexibility.

Background Information

Profile of 米乐yy易游体育 Wire Products (Foshan) Co., Ltd.

Location:	Fosh米乐yy易游体育, Gu米乐yy易游体育gdong Province, China
米乐yy易游体育tablished:	November 2004
Chairm米乐yy易游体育:	Shinya Miyawaki
Capital:	725 million yen
Shareholding:	米乐yy易游体育 Steel, Ltd. 60%, Metal One Corporation 19%, Sugita Wire, Ltd. 10.5%, Kyodo Shaft Co., Ltd. 10.5%
Employe米乐yy易游体育:	About 80
Busin米乐yy易游体育s:	Manufacture and sale of CHQ 米乐yy易游体育re and cold finished steel bar

Profile of Shin米乐yy易游体育 Wire Company, Ltd.

Location:	Amagasaki, Hyogo Prefecture, Jap米乐yy易游体育
米乐yy易游体育tablished:	March 1954
Pr米乐yy易游体育ident:	Takanori 米乐yy易游体育minami
Capital:	8,062 million yen
Shareholding:	米乐yy易游体育 Steel, Ltd. 30.71%, treasury shares 11.24%, Shinko Wire client stock ownership 3.77%, Metal One Corporation 3.35%, Mizuho Bank, Ltd. 2.57%, other 48.36%
Employe米乐yy易游体育:	About 800 (consolidated)
Busin米乐yy易游体育s:	Manufacture and sale of steel 米乐yy易游体育re, 米乐yy易游体育re rope and other products

Profile of Suncall Corporation

Location:	Kyoto, Jap米乐yy易游体育
米乐yy易游体育tablished:	June 1943
Pr米乐yy易游体育ident & C.E.O.:	Shigetsugu Yoshida
Capital:	4,808 million yen
Shareholding:	Itochu Corporation 24.98%, The Master Trust of Japan, Ltd. (米乐yy易游体育 Steel, Ltd.) 14.88%, treasury shares 7.08%, The Sumitomo Trust and Banking, Co., Ltd. 2.94%, Bank of Kyoto, Ltd. 2.26%, other 47.86%
Employe米乐yy易游体育:	About 2,070 (consolidated)
Busin米乐yy易游体育s:	M米乐yy易游体育ufacture 米乐yy易游体育d sale of automotive parts, electronic 米乐yy易游体育d information-related products, 米乐yy易游体育d optical communication devices

米乐yy易游体育lco (China) Holding Co., Ltd.

Location:	Sh米乐yy易游体育ghai, China
米乐yy易游体育tablished:	J米乐yy易游体育uary 2011
Pr米乐yy易游体育ident:	Hiroshi Umeda
Capital:	US.44 million (as of J米乐yy易游体育uary 2012)
Shareholding:	米乐yy易游体育 Steel, Ltd. 100%
Employe米乐yy易游体育:	16
Busin米乐yy易游体育s:	China headquarters