Japan's JFE Shoji eyes stake in metal firm Arfin India

Market: Metals
18/03/24

JFE Shoji, a Japanese trading house that focuses on steel products and their feedstock, today agreed to acquire a stake in Indian aluminium goods and ferro-alloy manufacturer Arfin India.

JFE Shoji did not disclose the size of the stake or investment amount.

Arfin India is a major producer of aluminium deoxidizers made from recycled scraps. Aluminium deoxidizers are used to remove oxygen during the steelmaking process. Arfin India has a production capacity of 20,000 t/yr for aluminium deoxidizers and 21,000 t/yr for aluminium alloy ingots. It also produces other products like aluminium wire rods and ferro-titanium.

JFE Shoji has decided to buy a stake in Arfin India in anticipation of growing demand for recycled aluminium deoxidizers in India, as well as Asean member countries.

Recycled aluminium deoxidizers require less energy to generate and does not emit as much CO2 emissions compared with the output process for conventional feedstock like bauxite.

JFE Shoji sees continuous growth in steel manufacturing in India, citing accelerating infrastructure development. It aims to sell recycled aluminium deoxidizers in India and Asean countries but does not plan to import them into Japan.

JFE Shoji previously acquired US steel frame manufacturer California Expanded Metals Products.

By Nanami Oki

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