JFE Shoji Trade to Acquire US Pipe Distributor
A recent announcement released information that JFE Shoji Trade Corp., including its subsidiaries JFE Holdings and JFE Steel, will be acquiring one of the United States’ largest pipe distributors, Kelly Pipe, whose history extends over 100 years. JFE Shoji Trade Corporation, a Japanese import and export company that focuses on raw materials and products for steel as well as other various venues such as real estate and electronics, will obtain all of the Kelly Pipe’s shares from Shapco Inc., the company’s current owner.
Founded in1898, Kelly Pipe serves customers not only in every state in the nation, but overseas as well. The company’s large inventory includes line and standard pipe in a wide variety of size, weight and grades which they provide to other pipe distributors who then sell their products to various companies and contractors who implement the pipe in several different industries. Since there is little demand for pipe and tube product in Japan, taking over a well-established company with a solid network of clients is the most effective way for JFE Shoji Trade, as well as other Japanese traders, to continue to grow their businesses.
JFE Shoji Trade currently has 55 sales companies within 19 countries, including two in the United States, and this new deal will not only increase sales and networks globally but will also alleviate some of the increased pipe sales from CSI (California Steel Industries), JFE Holdings’ 50-50 joint venture with Brazil’s Vale.