Sunday, September 2, 2012

No. 603: IHI and Paul Wurth of Luxemburg ally to establish a joint company in Japan (September 1, 2012)

Business trend:
Paul Wurth of Luxemburg and IHI, the world largest and second largest in blast furnace construction, ally to establish a joint company in Japan with a capital of 400 million yen on a 50:50 basis. The new company will cover Asia and Oceania, but China and India where Paul Wurth has been doing business independently are excluded. Paul Wurth has 11% market share in the construction of blast furnace bigger than 40 million cubic meters in volume and IHI has 10% market share in the world.

Paul Wurth has state-of-the-art technology in designing and constructing coke ovens that bake coals efficiently, while IHI has its self-developed coke by quenching (CDQ) technology that utilizes waste heat from iron works for power generation. The two companies wish to integrate their technologies to construct iron works characterized by energy saving and efficient usage of raw materials. Established in 1870, Paul Wurth has close and strong business relations with leading steelmakers in Europe and Brazil. IHI has constructed or renovated more than 100 blast furnaces since 1940.   

A blast furnace in Nippon Steel constructed by IHI
      

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