Nippon Steel unit eyes China foray

Kyodo

Nippon Steel Chemical Co. said Monday it will form two firms in China’s Jiangsu Province to make needle coke, used in electrodes for electric arc steel, and vehicle tire material carbon black, respectively, from around June 2014 to meet growing demand in China and other emerging economies.

The new firms will get the supply of raw materials from Pittsburgh-based Koppers Holdings Inc., the world leader in tar distillation. The investment costs are estimated at ¥13 billion, the chemical arm of Nippon Steel Corp. said.