Kanematsu, Maspion tie up

Kanematsu, Maspion tie up

TOKYO (AFP): Japanese trading house Kanematsu Corp. is to enter a stainless steel production venture with Indonesia's Maspion Group, due to begin operations in July 1997, Kanematsu officials said.

The new venture, PT Maspion Stainless Steel Indonesia, is to be capitalized at US$48 million, with Kanematsu holding a 12.5 percent stake and the Indonesian partner holding the remaining 87.5 percent, the officials said.

Planned investment by the new company will total $60 million, which includes $48 million in the initial capital from the two partners. A loan from the Japan Export-Import Bank will make up the balance.

Construction of a mill has already began at an industrial park of the Maspion Group in a suburb of Surabaya in eastern Java, Indonesia.

Sumitomo Metal Industries Ltd., a major Japanese steelmaker, will provide technical assistance to the joint venture.

Output of the cold-rolled stainless steel sheet, used for a wide range of products such as housing materials, is forecast at 50,000 tons per year, the officials said.