China-Japan Tinplate Joint Venture Begins Commercial Operation

On May 30, Fujian Sino-Japan Metal Corporation (SJ Metal), NKK's tinplate joint venture in China, held a ceremony to mark the beginning of commercial operations of its tinplate mill. The 150,000 tons-per-year mill was constructed in the Fuzhou Economic Technological Development Zone in Fujian Province,southwestern China, with its main facility transferred from the halted tinplate mill at NKK's Keihin Works.

SJ Mertal was established in December 1995 with an investment of US$42 million - 65% from Japanese groups (15% by NKK, 12% by Okura & Co., 11.5% each by Marubeni Corporation and Sumitomo Corporation, and 5% each by Mitsubishi Corporation, Nichimen Corporation and NKK Trading) and 35% from Taiwanese interests, including Tung Ho Steel Enterprise Corporation, Taiwan's largest mini-mill. The Japan/Taiwan-capitalized operation is the first joint venture in China's steel industry to be set up without Chinese capital.

The joint venture's main business is the manufacture and sale of tinplate in China to meet the country's growing need for cans for the food processing and chemical industries. With nearly half of Chinese can manufacturers based in Fujian Province, the company intends to respond to steadily increasing orders from local users. The plant's initial output will be about 30,000 tons a year, to increase to 100,000 tons in 1999.

Following the formation of the company, the NKK tinplate mill was relocated to the 60,000m2 plant site and installation work was finished by the end of 1997. The plant has been in trial runs since January with a staff of about 160 employees. The number of jobs will increase to 250 as operations expand. The May 30 ceremony was held as part of the 2200th anniversary of Fuzhou City's foundation.