Japan's JFE Steel, Maruichi Steel Tube and Toyota Tsusho said on Monday they will jointly buy the Vietnamese spiral steel pipe unit of South Korea's Jeong An Steel for about 18 billion won (US$16 million).
JFE Steel and Maruichi will each hold 35 percent of the Vietnamese firm, Jeong An Vina Co Ltd, while Toyota Tsusho, a metals-focused trading firm affiliated with Toyota Motor Corp, will hold the rest, they said in a statement.
JFE Steel is a unit of JFE Holdings.
With the acquisition, the three Japanese firms will start making steel pipe pile and steel pipe sheet pile in Vietnam and aim to take advantage of growing demand for construction steel pipe in Southeast Asia, especially Vietnam, they said.
A JFE official will replace the current president of Jeong An Vina, the companies said.
Jeong An Vina has an annual capacity of 50,000 tons and booked revenues totaling $10.9 million in the 2009 financial years, the companies said.