Strengthening the Automotive Steel Pipe Business in Indonesia― Capital Increase in and Capacity Increase by P.T. Indonesia Nippon Steel Pipe ―

Nippon Steel Corporation, for greater mobility in responding to the growing demand for steel tube for automotive use in ASEAN countries and India, established Siam Nippon Steel Pipe Co., Ltd. (60.5% shareholding by Nippon Steel; start of production in January 1996; hereinafter “SNP”) in Thailand, then established, as a subsidiary of SNP, PT. Indonesia Nippon Steel Pipe (95% shareholding by SNP; start of production in January 2007; hereinafter “INP”) in Indonesia. By building a business structure based on coordination between the two, Nippon Steel has stably supplied high-precision and high-grade automotive steel tube products to Japanese auto manufacturers and auto parts manufacturers operating in these areas.

INP, in view of expected increase in demand for steel pipe for two-wheeled and four-wheeled vehicles due to the growing Indonesian economy, tightening regulation against exhaust gas emissions of two-wheeled vehicles (conversion of exhaust system pipe to stainless steel) and increase in local procurement, and the resulting requests for supplies from Japanese automakers in Indonesia, has decided to increase its production capacity by building another plant at a site adjacent to the existing plant.

In order to supply high-grade pipes including exhaust system stainless pipes, INP and Sumitomo Metal Pipe & Tube Corporation, a subsidiary of Sumitomo Metal Industries, Ltd. will combine advanced technology held by each. Specifically, a new company to be established by Sumitomo Pipe & Tube and Sumitomo Corporation (74.8% shareholding by Sumitomo Pipe & Tube; 25.2% by Sumitomo) (“NewCo”) will subscribe for new shares to be issued by INP.

For the automotive steel pipe business overseas, Nippon Steel has recently decided to establish a new business base (Wuxi NSP Automotive Parts Co., Ltd.) in East & North China. The Nippon Steel Group aims to capture opportunities that arise from the growing Asian market by strengthening its global sales capabilities while responding accurately to the increasingly varied and broad needs of its customers.

(1) Outline of INP’s capacity expansion
INP will purchase the site adjoining the existing plant to construct another plant having a 2-inch electric-resistance-welded pipe mill for both stainless steel and carbon steel.

a. Production capacity: 1,500 tons/month
b. Start-up: November to December 2010
c. Start of commercial production: April 2011
d. Investment: approximately \\1,300 million

(2) Outline of capital increase in INP
INP will increase its capital by third party allotment of new shares (3,100 shares) to be subscribed by NewCo. The capital and the shareholding structure after capital increase would be as follows:

a. Capital: US$11,600,000 (before capital increase: US$8,500,000)
b. Shareholding structure: SNP 69.6%, Toshida Industry 3.7%, NewCo 26.7% (before capital increase: SNP 95%, Toshida Industry 5%)


1. Company name: PT. Indonesia Nippon Steel Pipe
2. Capital: US$8,500,000 (after capital increase: US$11,600,000)
3. Shareholding structure: SNP 95%, Toshida Industry 5% (after capital increase: SNP 69.6%, Toshida Industry 3.7%; the new company 26.7%)
4. President: Teruhisa Takamoto (concurrently the president of SNP)
5. Location: Bukit Indah Industrial Park, Citampek Karawang Province, West Java, Indonesia (about 60km from Jakarta City)
6. Start of commercial production: January 2007
7. Production facilities:
Existing plant:one electric-resistance-welded tube mill, two cold-drawing machines, two heat-treating furnaces and five cutters
No. 2 plant (to be built): one electric-resistance-welded pipe mill
8. Production capacity: about 2,000 tons/month (after capacity increase: about 3,500 tons/month)
9. Product: automotive machine-structural pipe for two-wheeled and four-wheeled vehicles
10. Employees: about 300 (6 of which are Japanese)


1. Company name: Siam Nippon Steel Pipe Co., Ltd.
2. Capital: THB783 million (60.5% shareholding by Nippon Steel)
3. President: Teruhisa Takamoto
4. Location: Siam Eastern Industrial Park, Rayong Province, Thailand
5. Start of commercial production: January 1996
6. Production facilities: Three electric-resistance-welded pipe mills, five cold-drawing machines, four heat-treating furnaces, secondary working equipment, etc.
7. Production capacity: about 5,500 tons/month (No. 2 plant startup in July 2009)
8. Products: automotive machine-structural pipe for two-wheeled and four-wheeled vehicles
9. Employees: about 1,000 (7 of which are Japanese)

For more information, please contact:
Public relations Center, General Administration Division: Tel. 81-3-6867-2135