Investment in Malaysian electro-galvanized steel sheet manufacturing firm

Nippon Steel Corporation
HANWA Co., Ltd.


Since July 2009, Nippon Steel Corporation (President: Shoji Muneoka, “Nippon Steel”) and HANWA Co., Ltd. (President: Shuji Kita, “HANWA”) have been in discussion with Tatt Giap Group, with which both Nippon Steel and HANWA have had business relationships for many years, on possible investment in and stable supplies of cold-rolled steel substrates to E-Galv Steel Industries Sdn. Bhd. (President: Dato’ Steven Siah, Managing Director: Chai Yin Chong, “E-Galv Steel”), a Malaysian manufacturer of electro-galvanized steel sheets.

Nippon Steel and HANWA have now reached an agreement with Tatt Giap Group to acquire 10% and 15%, respectively, of the voting shares in E-Galv Steel from its largest shareholder, Tatt Giap Steel Centre, a coil center and a subsidiary of Tatt Giap Group, around the end of December 2009.

Malaysia is regarded as a large consumption area of electro-galvanized steel sheets, where many Japanese manufacturers of home appliances such as flat-screen TV and audio instrument have established their factories. Demand for electro-galvanized steel sheets is expected to grow steadily in Malaysia.

By investing in E-Galv Steel, Nippon Steel and HANWA aim to strengthen their relationships and expand its business with Tatt Giap Group. Also, Nippon Steel and HANWA intend to build a supply structure for electro-galvanized steel sheets capable of satisfying the quality requirements of Malaysian customers including Japanese home appliance manufacturers in Malaysia and to securely capture steel demand for steel, mainly for home appliances, in Malaysia, by stable supply of cold-rolled steel substrates to E-Galv Steel and through possible technical assistance to E-Galv Steel, as necessary.

E-Galv Steel is planning to change its current name to Nippon EGalv Steel Sdn. Bhd. (漢字名称：日達鋼鉄有限公司) after Nippon Steel and HANWA complete their investment in E-Galv Steel.


【Outline of the investee company】
Current name: E-Galv Steel Industries Sdn. Bhd. (漢字名称：大正鋼鉄工業有限公司)
Planned new name: Nippon EGalv Steel Sdn. Bhd. (漢字名称：日達鋼鉄有限公司)
Establishment: January 2006 (Commercial production began in February 2009)
President: Dato’ Steven Siah
Managing Director: Chai Yin Chong
Location: Prai Free Industrial Zone, Penang, Malaysia
Capital: 25million Ringgit (approximately 660 million yen)
Business: Manufacture and sale of electro-galvanized steel sheets
Capacity of production facilities: Electro-galvanized steel sheets line: 150,000 tons/year
Shareholders: Nippon Steel: 10%, HANWA: 15%, Tatt Giap Steel Centre: 67.2%, Chai Yin Chong: 7.8%

For further inquiries, please contact:
Nippon Steel: Public Relations Center, General Administration Div. +81-3-6867-2135
HANWA: President’s Office +81-3-544-2387



Nippon Steel Corporation
Head Office: 6-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo
Representative : Representative Director and President Shoji Muneoka
Establishment: March, 1970
Capital: 419.5 billion yen
Sales: 4,769.8 billion yen (FY2008)
Number of employees: 15,503 (as of March 31, 2009)

HANWA Co., Ltd.
Head Office: 1-13-10 Tsukiji, Chuo-ku, Tokyo
Representative: Representative Director and President Shuji Kita
Establishment: April 1, 1947
Capital: 45.6 billion yen
Sales: 1,539.2 billion yen (FY2008)
Number of employees: 1,088 (as of March 31, 2009)

Tatt Giap Group
Head Office: Prai Free Industrial Zone, Penang, Malaysia
Representative: Dato’ Steven Siah
Establishment: 1978
Capital: 45 million Ringgit (approximately 1.2 billion yen) (FY2008)
Business: Steel-related business (distribution, coil center, slitting and shearing of stainless steel, manufacture and sale of polished stainless and steel bars, manufacture and sale of stainless steel welded pipe, manufacture and sale of electro-galvanized steel coils)
Sales: 300 million Ringgit (approximately 7.9 billion yen) (FY2008)
Number of employees: 300 (as of December 31, 2008)