Japan’s Hanwa group company Hanwa American Corp has acquired a 2.29pc stake in China-based steel processor Daimei International. The investment will expand Hanwa’s access to the Chinese market.
Daimei International (Da Ming, Daemyung) has processing plants in 10 locations including Wuxi, Takeshi, Han, Hangzhou, Tianjin, Taiyuan, Zibo, Jingjiang, Tai’an, Wuxi Maesu, Jiaxing). is located in Wuxi city, in Jiangsu province. The company is involved in the steel wholesale and processing sector and handles approximately 2.7mn mt of ordinary steel and 2mn mt stainless steel, annually. The company supplies steel to petrochemicals, new energy, pharmaceuticals, electrical, mechanical and special vessels sectors. It also provides material for the railways and aerospace segment.
Through this investment, Hanwa aims to strengthen its partnership with Daimei group with whom it has established steel processing centers in Zhejiang Province. Daemyung International is a holding company of Daimei group. Hanwa expects supply chain expansion and synergies in the area of global business development from this venture.
Japan-based Hanwa group is involved in the domestic steel trade and in the import and export of steel products, steelmaking raw materials including ferrous scrap. The company is also a pioneer of the Japanese non-ferrous metals and specialty metals recycling business.
In Q1 2021 (April-June), Hanwa’s net sales increased to JPY452.6bn ($4.11bn) amid a rise in transaction volume in steel and primary metals businesses.