Kobe Steel plans to take an equity stake in the US secondary steel processor, Grand Blanc Processing LLC.
They are making this move to position themselves such that they will be able to strengthen their ability to supply wire rod to the US automotive industry.
Grand Blanc is currently 100% owned by Shinsho Corp, a Kobe Steel Affiliate. In March, Kobe will take a 20% stake in Grand Blanc, while secondary processors Meihoku Kogyo and Osaka Seiko (who each have business links with Kobe) will both take a 5% share, with Shinsho holding the balance.
Grand Blanc sources wire rod from numerous suppliers. They heat treat the rod and draw it down into wires for use in nuts and bolts for the automotive industry.
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