Kobe Steel Ltd. said it will buy a 20 percent stake in U.S. secondary steel processor Grand Blanc Processing L.L.C. for $3.6 million in a bid to strengthen its supply of wire rod products to Japanese auto parts manufacturers in the United States.
The stake will be purchased by the end of next March from Kobe’s Shinsho Corp. subsidiary, which currently owns all GBP's stock, Kobe Steel said.
It said the acquisition of the stake was aimed at meeting growing demand from Japanese auto parts manufacturers.
The US units of Japanese automakers are raising their annual production capacity from the current 4.3 million units to 5.1 million units in three years.
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