Shanghai, January 28 (Gasgoo.com) Nippon Steel Corp. announced its plans yesterday to acquire a Chinese subsidiary of steel pipe manufacturer Toshida Industry Co., Nikkei reported.
Nittetsu Steel Pipe Co., a wholly owned unit of Nippon Steel, will obtain a 51% stake in the Chinese company by early March. This Jiangsu province-based firm will then be renamed Wuxi NSP Automotive Parts Co. Nippon Steel and Sumitomo Pipe & Tube Co. will each take a 10% stake as well.
As a result, Toshida's interest in the auto steel company will be reduced to 17% from 65.2%. The investments, including the cost of acquiring management rights, will likely total 900 million yen.
Nippon Steel is rushing to expand its business in China, the world's largest auto market. Output capacity at the Jiangsu site will be doubled to 2,000 tons a month by 2011.
