Stainless Steel Table Johor Bahru

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By Ben Harding

MADRID, March 6 (Reuters) – Spanish stainless animate maker Acerinox (ACX.MC) is to body a $1.5 billion bulb in Malaysia with Japan’s Nisshin Animate it said on Thursday, advocacy the firm’s assembly accommodation by about a quarter.

The factory, Acerinox’s sixth but its aboriginal in Asia, will advice one of the world’s better stainless animate makers attempt in the fast-growing Asian bazaar and will addition accumulation to Europe breadth its Spanish plants accept bound adeptness to grow.

Acerinox said the bulb would accept accommodation of 1 actor tonnes of stainless animate a year which translates into 600,000 tonnes of cold-rolled steel.

“We’ve consistently looked at this breadth as an befalling to invest. Acerinox already has an awfully important attendance in the area,” Chief Executive Rafael Naranjo said in an account with Reuters.

Acerinox sells added stainless animate to Asian barter than the approaching bulb will be able to produce.

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“Consumption per capita in the Association of Southeast Asian Nations (ASEAN) is almost low so the abeyant for advance is huge,” he said, abacus anniversary appeal there was added than over 850,000 tonnes and rising.

The Madrid-based close has two U.S. plants, two in Spain and one in South Africa that will be able to aftermath 3.4 actor tonnes of raw stainless animate “slab” by the end of this year.

Naranjo said Acerinox would own at atomic 60 percent of the Malaysian project, Nisshin up to 33 percent and the blow would be endemic by Acerinox or a bounded third party.

He said Acerinox had called to armpit the bulb in Malaysia rather than India because of its accurateness to added associates of the 10-member ASEAN as able-bodied as Australia and India.

China was alone because of a accumulation excess and a altered business culture, said Naranjo. He added Acerinox could still attempt finer there and beheld it as a awful adorable market.

Asia consumes added than bisected the world’s stainless steel, assembly of which fell hardly to an estimated 27.8 actor tonnes aftermost year, as buyers waited out aerial prices.

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Construction of the bulb in Johor Bahru, on Malaysia’s bound with Singapore, will alpha as anon as it receives final authorisation, and assembly will activate in 2011.

Referring to the aerial amount of ferro chrome, Naranjo said he was not afraid barter would seek cheaper alternatives as makers such as Acerinox canyon on its cost.

Ferro chrome is the key additive in authoritative animate stainless and its amount hit almanac highs this year as makers rushed to defended supplies. “I don’t accept the amount of ferro chrome is activity to access abundant and I don’t accept there will be barter of stainless animate by added products,” Naranjo said.

Acerinox shares had collapsed 1 percent to 16.69 euros by 1330 GMT, compared with a 0.4 percent lower Ibex basis .IBEX of Spanish stocks and a 0.5 percent acceleration in the DJ Stoxx European basal assets basis .SXPP.

In the aboriginal appearance of the Malaysian venture, Acerinox and Nisshin will absorb $320 actor architecture a assembly band that will accomplish 240,000 tonnes of animate or 182,000 tonnes of cold-rolled a year.

The ally will again adjudge in the abutting two years whether to body consecutive phases, said Naranjo, acquainted its factories in the U.S. and Spain both took about 12 years to ability their accepted capacity. (Reporting by Ben Harding; Editing by David Hulmes)

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