NKK Increases Shareholding in Thai Joint Venture

NKK, Marubeni Corporation and Thai shareholders in Thai Cold Rolled Steel Sheet Public Co., Ltd. (TCR) have agreed to increase their investments in the Thai-Japanese joint venture in response to TCR's recent plan to issue new shares worth 1.38 billion baht. TCR decided to increase its capital in part to deal with an increase in its loan burden due to the sharp fall of the countr y's currency late last year.

TCR will be capitalized at 4.38 billion baht, up from its current 3 billion baht. Of the total increase, NKK and Marubeni will each buy about 580 million baht worth of the new shares, while TCR's Thai shareholders led by the conglomerate Sahaviriya Group will buy about 220 million baht worth. As a result, NKK and Marubeni's holdings in TCR will both rise to 23% from their current 11.5%, while those of Nichimen Corporation and other Japanese investors will decline to 6% from their current 7%. The stake held by the Thai partners will also decline to 48% from the current 70%. In consequence, the ownership in TCR by the Japanese partners will rise from the current 30% to a majority 52%.

The Bangkok-based joint venture (president: Wit Viriyaprapaikit, president o f the Sahaviriya Group) was founded in March 1990 to launch Thailand's first cold-rolled steel sheet project. The one million ton-per-year cold rolling mill, constructed in Bang Saphan 400km southwest of Bangkok with NKK's technical assistance, began commercial operations in June 1997 and has been steadily supplying high-quality steel sheets to Thai manufacturing industries, including local Japanese auto and electric appliance makers.