Expansion of Cold Heading Wire Business Capacity in China
Jun. 12, 2014
Nippon Steel & Sumitomo Metal Corporation
Expansion of Cold Heading Wire Business Capacity in China
Nippon Steel & Sumitomo Metal Corporation (“NSSMC”; representative director and president: Kousei Shindo) has established a new company in December 2013 for the purpose of the enhanced operations of the new company, along with a new plant, all for the expansion of the capacity and production system of Nippon Steel Bar & CH Wire (Suzhou) Co., Ltd. (NBC China), which is a production/sales company for cold heading wire in China. This is being achieved in conjunction with partners of NBC China (MATSUBISHI METAL INDUSTRY CO., LTD., Miyazaki Seiko Co., Ltd., SANYU CO., LTD., Toyota Tsusho Corporation, Metal One Corporation, and NIPPON STEEL & SUMIKIN BUSSAN CORPORATION). The land for the new plant was determined to be within the Suzhou Wuzhong Economic and Technological Development Zone, where the new company was located, and the construction of the new plant started today, June 12, aiming at a start of operations in June 2015.
NBC China was established in 2006, and operations began in 2007. Supported by the growth of automobile production in China, the plant, with a current capacity of 7,000 tons/year, is now in full operation.
This expansion of NBC China adequately addresses demand for cold heading wire in China for which further growth is expected. The expansion is also performed in order to further enhance competitiveness in quality, cost, and delivery. A plant with facilities that can consistently conduct the processes of pickling, wire drawing, and heat treatment will be built, and production capacity will be increased to 42,000 tons/year.
Cold heading wire is used for important secured part materials such as for automobile bolts and bearings. It is a product requiring strict quality control in terms of materials and dimensional precision, etc. In this area, NSSMC strives to enhance its consistent capabilities regarding quality improvement, development, and supply, from wires to secondary processed products, as well as to appropriately meet user requirements.
Overview of the new company:
| Title: | Nippon Steel & Sumikin Cold Heading Wire (Suzhou) Co., Ltd. (abbreviation: NSCh [Suzhou]) |
| Location: | Jiangsu Sheng Suzhou Wuzhong Economic and Technological Development Zone, Jiangsu Province, China |
| Line of business: | Production and sales of cold heading wire |
| Managing director: | Akira Kita |
| Registered capital: | 15 million USD |
| Investment percentage: | NSSMC: 28%; MATSUBISHI METAL INDUSTRY CO., LTD.: 14%; Miyazaki Seiko Co., Ltd.: 14%; SANYU CO., LTD.: 14%; Toyota Tsusho Corporation: 12%; Metal One Corporation: 9%; NIPPON STEEL & SUMIKIN BUSSAN CORPORATION: 9% |
| Amount of investment: | Approx. 3.2 billion yen |
| Investment details: | Pickling and coating facilities, two heat treatment furnaces, with three wire drawing machines added to two existing machines, amounting to five machines in total |
| Production capacity: | 42,000 tons/year |
| New plant’s start of operations: | June 2015 |
For more information, please contact:
Public Relations Center, General Administration Div., TEL: +81-3-6867-5807
