Kobe Steel (Kobelco) has terminated the sale of its share in the copper tubing joint venture, Kobelco & Materials Copper Tube (KMCT).
Kobelco cited the lack of clarity in business conditions due to the COVID-19 pandemic as the key factor while announcing the decision on Dec 24. The Japanese steelmaker’s shares were slated to be transferred to Daishin P&T Co Ltd, which is a subsidiary of CTJ Holdings.
The company added that while the sale would be canceled, KMCT and Daishin would collaborate for the copper tube business with the latter transferring a part of operations from its Amagasaki Plant to KMCT’s Hatano Plant, both based in Japan.
The transfer of shares by Kobelco to Daishin was first announced in February and was deferred twice, once in March and again in June, before the latest announcement on the cancellation.
KMCT is a joint venture between Kobelco and Mitsubishi Materials Corporation with the two companies holding a 55pc and 45pc stake, respectively. The JV’s Hatano plant has the capacity to produce over 100,000mt of copper tubes per year and primarily manufactures tubes for air-conditioning, construction, and cold/hot water supply.