On October 31st 2012, JFE Steel Corporation, Sahaviriya Steel Industries Public Company Limited and Marubeni Itochu Steel Inc signed partnership agreement.

JFE and MISI will invest USD 25 million each (USD 50 million in total) in subscribing SSI new ordinary shares at the price of THB 0.68 per share under SSI's comprehensive financial plan.

JFE and MISI will increase its stake in the existing JV Company Thai Cold Rolled Steel Sheet Public Company Limited by buying shares from SSI. After completion of the deal, SSI and JFE will each hold 36.04% of the shares in TCRSS, and MISI 25.10%. Also, JFE will provide technical assistance, assist and transfer to TCRSS the necessary technology for producing stable supplies of cold rolled steel sheets to meet the growing demand of the Thai automotive industry.

In order to strengthen JFE-MISI-SSI business partnership, the three firms agree that JFE shall support SSI Group with continuous steel supply, which provides additional steel material stability for SSI.

In addition, JFE agrees to support SSI Group in the effort to continuously improve operational performance through technical cooperation.

The three firms foresee growing demand in the ASEAN market, especially in high grade steel sheet products for the automobile industry. The cooperation of SSI-JFE-MISI under the Partnership Agreement will result in better products and services for the customers in the region. In the Thai market in particular, this partnership will lead to more localization of high grade steel sheet and add value to the customers and local industries.

Source - JFE Steel

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