Japan trader Hanwa buys steel coil plant from Vietnam's SMC Trading Investment
HO CHI MINH CITY, NNA - Hanwa Co., a Japanese firm trading in a wide range of products including steels and construction materials, has bought a 65-percent stake in a steel coil service center in Vietnam to capitalize on the growing demand for steel in the country’s fast-growing northern region.
Hanwa acquired the shares in SMC Ha Noi One Member Co. from a major Vietnamese steel products wholesaler, SMC Trading Investment Joint Stock Co., effective August 21, the Osaka-based trading company said in a statement on Friday. They renamed the steel coil service subsidiary Hanwa SMC Steel Service Ha Noi Co.
The coil plant located in Hanoi is capable of processing 10,000 tons a month and is equipped with two large-sized slitters, which adjust the width of coils supplied by steelmakers, and one large-scale leveler among other machinery.
“This is our first direct investment in the Hanoi region,” a Hanwa spokesman told NNA. “This is also our first investment to acquire a majority stake of more than 50 percent in a coil center in Vietnam.”
Hanwa also owns 20 percent of shares in SMC Trading Investment. It has invested in a steel coil center, an affiliate of Japan’s Nippon Steel Trading Corp., located in the southern Vietnamese province of Binh Duong.
By running the new steel coil center under its leadership, Hanwa is aiming to expand its steel sheet business further in the Hanoi region “where economic development is anticipated,” the statement said.