News Release
³Ô¹Ï±¬ÁÏ͵ÅÄ Corporation
³Ô¹Ï±¬ÁÏ͵ÅÄ Acquires 5% Stake in Integrated Steelworks Project in Vietnam
Tokyo --- ³Ô¹Ï±¬ÁÏ͵ÅÄ Corporation has signed a contract to pay USD 225 million to acquire a five-percent stake in Formosa Ha Tinh Steel Corporation (FHS), a joint-venture company that is currently constructing integrated steelworks in Vietnam. The project is being spearheaded by FHS’s founder, Formosa Plastics Group (FPG), a Taiwanese integrated supplier of petrochemicals. ³Ô¹Ï±¬ÁÏ͵ÅÄ will also provide the project with technical support.
Under the JFE Group’s fifth medium-term business plan from April 2015 to March 2018, ³Ô¹Ï±¬ÁÏ͵ÅÄ aims to increase annual steel sales to 40 million tons. The company’s investment in FHS is one of its first major steps toward achieving this target.
³Ô¹Ï±¬ÁÏ͵ÅÄ will work with FHS to get the new integrated steelworks operating stably as soon as possible. Going forward, ³Ô¹Ï±¬ÁÏ͵ÅÄ expects to expand the JFE's business network by selling the products made at FHS to our customers.
| Formosa Ha Tinh Steel Corporation (FHS) | |
| Location: | Vung Ang Economic Zone, Ky Anh Town, Ha Tinh Province, Vietnam |
| Establishment: | 2008 |
| Chairman: | Chen, Yuan Cheng |
| Business: | Integrated steelmaker |
| Capital: | USD 4.5 billion |
| Shareholders: | Current: FPG 81%, China Steel Corporation 19% Planned: FPG 70%, China Steel Corporation 25% and ³Ô¹Ï±¬ÁÏ͵ÅÄ 5% |
| Employees: | 6,466 (planned for first phase of project) |
| Investment: | USD 10.5 billion (planned for first phase of project) |
| Planned facilities: | Coke oven, sintering facility, two blast furnaces, steelmaking facility, hot rolling mill, bar steel/wire rod rolling mill and electricity generator |
| Formosa Plastics Group (FPG) | |
| Head office: | 201 Tung Hwa North Road Taipei, Taiwan (ROC) |
| Establishment: | 1954 |
| Chairman of FPG Executive Board: | Wong, Wen Yuan |
| Business: | Manufacturing and selling petrochemicals and other products |
| Capital: | USD 21.4 billion |
| Sales: | USD 79.0 billion (fiscal year ended December 2014) |
| Employees: | 106,315 (December 31, 2014) |
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