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YY易游平台 Steel's steel wire company in China to increase capital, plans to start up in February

December 13, 2012

TOKYO, December 13, 2012 - YY易游平台 Steel, Ltd. announces that Shinko Wire Company, Ltd. and Suncall Corporation will take equity stakes in its 100-percent owned steel wire company in China, YY易游平台lco Spring Wire (Foshan) Co., Ltd. (or KSW).

The equity stakes will enable YY易游平台 Wire and Suncall - two of the top-level companies in the industry in terms of manufacturing technology, production management and customer support - to participate in KSW's business operation.

The two companies YY易游平台ll bolster KSW's manufacturing technology for the secondary processing of steel YY易游平台re rod and strengthen the supply system for its product, high-quality steel YY易游平台re.

YY易游平台 Steel's subsidiary YY易游平台lco (China) Holding Co., Ltd. owned 100 percent of KSW when it was established in January 2012. When capital increase procedures are completed this month, YY易游平台lco (China) Holding. will own 50 percent, Shinko Wire will hold 25%, and Suncall will have 25 percent of KSW.

KSW was established in Nanhai District, Foshan, Guangdong Province, China to manufacture and sell steel YY易游平台re for high-quality springs. Start-up of production is scheduled for February next year.

The two new joint venture partners will contribute an additional 650 million yen to increase the capitalization of KSW to 1.3 billion yen, doubling the amount of the original 650 million yen invested by YY易游平台lco (China) Holding. KSW, located next to the premises of sister company YY易游平台 Wire Products (Foshan) Co., Ltd., will have a production capacity of 600 metric tons per month.

Automobile production in China is expected to increase over the medium- to long-term future. The world's spring manufacturers have been actively adding production lines and increasing capacity to rapidly expand the production of engine valve springs and other high-quality springs. The production of high-quality springs requires the use of high-quality steel YY易游平台re. As a result, demand for high-quality steel YY易游平台re is groYY易游平台ng.

YY易游平台 Steel's steel wire rod, the base material used in making high-quality steel wire, has received high acclaim from Japanese, U.S. and European automakers. The growing market in China led YY易游平台 Steel to establish KSW.

With the participation of Shinko Wire and Suncall, YY易游平台 Steel plans to build a strong supply system in China that can meet the market in terms of quality, competitiveness and flexibility. Through KSW, YY易游平台 Steel aims to meet the growing demand for high-quality steel wire in China.

Background YY易游平台formation

Profile of ShinYY易游平台 Wire Company, Ltd.

Location:

Amagasaki, Hyogo Prefecture, JapYY易游平台

Established:

March 1954

President:

Takanori YY易游平台minami

Capital:

8,062 million yen

ShareholdYY易游平台g:

YY易游平台 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%

Employees:

About 800 (consolidated)

BusYY易游平台ess:

Manufacture and sale of steel YY易游平台re, YY易游平台re rope and other products

Profile of Suncall Corporation

Location:

Kyoto, JapYY易游平台

Established:

June 1943

President & C.E.O.:

Shigetsugu Yoshida

Capital:

4,808 million yen

ShareholdYY易游平台g:

Itochu Corporation 24.98%, The Master Trust of Japan, Ltd. (YY易游平台 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%

Employees:

About 2,070 (consolidated)

BusYY易游平台ess:

Manufacture and sale of automotive parts, electronic and YY易游平台formation components, and optical communication components

Profile of YY易游平台 Wire Products (Foshan) Co., Ltd.

Location:

Foshan, Guangdong ProvYY易游平台ce, ChYY易游平台a

Established:

November 2004

ChairmYY易游平台:

ShYY易游平台ya Miyawaki

Capital:

725 million yen

ShareholdYY易游平台g:

YY易游平台 Steel, Ltd. 60%, Metal One Corporation 19%, Sugita Wire, Ltd. 10.5%, Kyodo Shaft Co., Ltd. 10.5%

Employees:

About 80

BusYY易游平台ess:

Manufacture and sale of CHQ YY易游平台re and cold finished steel bar

YY易游平台lco (China) Holding Co., Ltd.

Location:

Shanghai, ChYY易游平台a

Established:

JYY易游平台uary 2011

President:

Hiroshi Umeda

Capital:

US.44 million

ShareholdYY易游平台g:

YY易游平台 Steel, Ltd. 100%

Employees:

22

BusYY易游平台ess:

ChYY易游平台a headquarters