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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Masami Iijima) announced the commencement of commercial operations of its Steel Service Center, MAG Aliança Automóveis do Brasil SSC S.A.("MAG"), for processing and supplying steel products mainly to the automotive industry. The company is jointly established with ArcelorMittal Gonvarri Brasil S.A.("AMG" ), through Mitsui & Co. (U.S.A.), Inc. ("Mitsui USA") and is located within Nissan Brazil's Supplier Park in Resende, Rio de Janeiro, Brazil, where Nissan has been producing vehicles since February, 2014. MAG's annual processing capacity is 160,000 tons.
Brazil has firmly established itself as one of the major global automotive manufacturing countries and has a 60% share of the South American market. Domestic vehicle sales in Brazil are expected to reach 5 million in 2017, making it the world's 3rd largest market. The Brazilian government actively promotes the development of the domestic automotive industry, and as a result the nation's automotive steel processing demand is expected to grow in the mid to long-term.
AMG is a joint venture between ArcelorMittal, the world's leading steel company, and Gonvarri Steel Industries ("Gonvarri"), which has 30 steel service centers in 15 countries. AMG operates two steel service centers in Brazil and possesses a great wealth of experience in the Brazilian market.
Mitsui also has a substantial track record and abundant expertise in the operation of steel service centers globally, and it aims to create a value chain from steel processing to parts production in its joint partnership with AMG.
|Name of Compnay||MAG Aliança Automóveis do Brasil SSC S.A. ("MAG")|
|Location||Resende, Rio de Janeiro, Brazil|
|Established||July 1, 2014|
|Number of employees||Approx. 30|
|Equity||BRL 106.9 million|
|Shareholders||Mitsui USA 50%
|Business Description||Processing and sales of steel products mainly for automotive application|
|Production Capacity||Approx. 160,000 tons per year (Slitter, Blanking)|
|Name of company||ArcelorMittal Gonvarri Brasil S.A.|
|Head Office||Araucaria, Parana, Brazil|
|Representative||José Antonio Orue CEO|
|Number of employees||Approx. 280|
|Business Description||Processing and Sales of steel products mainly for automotive application|
|Production Capacity||Approx. 600,000 tonnes per year|
|Name of company||ArcelorMittal|
|Representative||Lakshmi Mittal Chairman and CEO|
|Number of employees||Approx. 245,000|
(as of Dec 2012)
|USD 84.2 billion|
|Business Description||Steel manufacturing|
|Name of company||Gonvarri Steel Industries|
|Head Office||Madrid, Spain|
|Representative||Jon Riberas President & CEO|
|Business Description||Processing and Sales of steel products|
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.