A JV Steel Plant

Dongkuk Steel to build steel plant in Dangjin in alliance with Japan's JFE Steel

Dongkuk Steel Mill Co. and Japan's JFE Steel Co. signed an agreement to jointly build a steel plate plant in Dangjin, South Chungcheong Province, with an annual capacity to produce 1.5 million tons of high-quality steel plates.
Chairman Chang Sei-joo of Dongkuk Steel and President Hajime Bada signed the joint-venture strategic alliance agreement on September 25th at the Korean steelmakers'head office in Seoul.
Under the agreement, JFE Steel, the third largest steel maker in the world, will provide the technology for high-class steel plate production and supply slabs to the new Dongkuk plant on a long-term basis. The Japanese steel company will also buy a 15 percent stake of Dongkuk Steel and in exchange the Korean steel maker will invest 10 billion yen to hold a stake in the Japanese steelmakers'holding company, JFE Holdings.
For smooth expansion of the mutual cooperation between the two partners, they also agreed to set up a strategy committee to consult on important business strategies.
The two steel makers maintained cooperative relations since 1999 when Dongkuk signed a cooperation agreement with former Kawasaki Steel, but JFE took over Kawasaki Steel, along with its 4.09 percent stake in Dongkuk Steel. The two steel makers maintained the cooperative relations including the long-term supply of slab and technology cooperation.
The expanded strategic cooperation this time will provide overall support for early stabilization of Dongkuk's new steel plant in Dangjin and mid-to-long term basis, Dongkuk will secure competitive edge against late-starters in steelmaking, especially, those in China with its high-quality steel plates and penetrate new markets and boost its corporate value in the end.
Dongkuk will invest 760 billion won in the new steel plant to be completed in August, 2009, which will open the third generation steel plate production age for the company with the Pohang steel plate facilities solidified by founder Chang and the chairman.
Dopngkuk Steel plans to upgrade its steel plate production system to high-class steel plates through the help of JFE. When the Dangjin plant is completed, the steel maker's high-quality steel plate production capacity will rise to 3 million tons per year, including the production at its second steel plate production plant in Pohang. Steel plates for shipbuilding will be a core product, along with steel plates for other uses. Dongkuk is building a slab plant, Ceara Steel, in Brazil for completion in 2009, with the capacity to produce 1.5 million tons of slab a year. Dongkuk, in addition, will seek a wide range of cooperation from JFE in running the Central Technology Lab under its special relationship with the Japanese steelmaker since 1999 focused on maintenance of mutual trust, long-term business relations and the accomplishment of a win-win business strategies, Chairman Chang Sei-joo said.
"The steel makers will work together for the future like brothers with deep trust in each other and strive to be a top steelmaker in the world,"the chairman said.
Since Dongkuk started the operation of its first plant in Dangsan-dong, Seoul, in July, 1954, the company's other plants followed soon in Busan, 1964; in Incheon, 1979; and in Pohang, 1991. In these new plants, the company has been producing highest quality plates, shapes and bar products all in the precision range of less than 0.1 mm tolerance, 365 days of the year, and annual production reached up to 5.3 million tons in 2000.
In the 21st century, the cutting-edge of competition in the global arena of steel manufacturing comes from the experience, the technology and the professionalism of the staff and workers firmly supported by its state-of-the-art production equipment.
Dongkuk Steel, with unsurpassed experience and with its superb technology accumulated through years of dedication in steelmaking, is ever innovating and reconditioning itself, thus becoming the focus of attention among the world's leading steel companies.
In 2000, the steel maker provided advice to Daniell, S.P.A. of Italy in the area of the steel plate construction and the technology for the manufacturing of steel plates. The signing of the contract was proof and proclamation that the know-how and the technology of Dongkuk Steel is the best among steelmakers from across the world. nw

(photos from right) Dongkuk Steel Mill Chairman Chang Sei-joo.; An inside view of Dongkuk Steel Mill.; Dongkuk Steel Chairman Chang and JFE President Hajime Bada shakes hands after signing the agreement to expand their strategic alliance Sept. 25 in Seoul.