JFE Steel Buys Stake in China Pipemaker

JFE Steel Corp. of Japan has agreed to buy a 24 percent stake in Chinese steel pipemaker Pancheng Yihong Pipe Co. JFE intends to expand Pancheng’s sales of seamless pipes used in resources drilling.

The steelmaking unit of JFE Holdings Inc. will buy new shares issued by the Chinese company, which is based in western China and is a joint venture by Chengdu Steel & Vanadium Co., which own 60 percent of the firm., and Marubeni-Itochu Steel Inc. of Japan, which holds 40 percent.

After the new share issue, the stakes held by Chengdu Steel and Marubeni-Itochu Steel will fall to 51 percent and 25 percent, respectively.