– JFE Steel Corporation and Marubeni-Itochu Steel Inc. (MISI) have acquired a combined 2.21% of the outstanding shares in PT. Steel Pipe Industry Indonesia, Tbk (SPINDO), a major pipe manufacturer and steel processer in Indonesia. Broken down, JFE Steel holds a 1.48% share and MISI owns 0.73%.
All three companies will benefit from the equity partnerships. SPINDO expects to increase sales and market share in Indonesia, as well as to expand its access to stable supplies of steel. JFE Steel and MISI will gain a stable channel in a growing market to develop sales of JFE Steel-branded products. Indonesia, one of the most promising markets for steel in the ASEAN region, is forecast to continue expanding.
Established in 1971, SPINDO is the largest pipe and steel processing manufacturer in Indonesia. JFE Steel’s commercial relations with SPINDO go back to one of its predecessor companies, Kawasaki Steel, which supplied hot-rolled steel sheets to the Indonesian company through MISI, which was part of ITOCHU Corporation at the time. SPINDO processes and sells approximately 350,000 tons of pipe and thin steel annually for uses including motorcycle parts and construction materials.
