Capacity Increase Investment in Nippon Steel Bar ＆ CH Wire (China)

Nippon Steel Corporation (“NIPPON”), with respect to Nippon Steel Bar & CH Wire (China) Co., Ltd. (“NBC China”), a company manufacturing and selling steel wire for cold heading in China, has reached the decision, together with MATSUBISHI METAL INDUSTRY CO., LTD., Miyazaki Seiko Co., Ltd., SANYU CO., LTD., Toyota Tsusho Corporation, Metal One Corporation and NIPPON STEEL TRADING CO., LTD., which are joint capital subscribers in NBC China, to increase its productive capacity and substantially expand the local fabrication setup.

NBC China, founded in 2006 and operated in 2007, underpinned by the growth of auto production in China, is now running at full capacity, with the existing capacity of 7,000 tons/year.

Capacity increase of NBC China this time is intended to accurately respond to the continuing growth of wire for cold heading in China, while enhancing its competitiveness in the aspects of quality, cost and delivery. With the construction of a new integrated plant having the pickling, wire-drawing, and heat-treating equipment, the company’s productive capacity will come to 42,000 tons/year.

Wire for cold heading are used as materials for automotive bolts, bearings and other important safety-preservation parts, of which the exercise of rigorous quality control in material quality, dimensional accuracy and others is required. In this field, NIPPON will be further strengthening its quality-improvement and development capabilities, integrated from wire rod through to secondary fabricated products, in an effort to be appropriately responsive to customer needs.

Outline of the capacity increase investment:
①Amount of investment: \\2,750 million
②Contents of investment: pickling & film-application line, heat-treating furnace, and 3 units of wire-drawing equipment (added to the existing 2 units, to a total of 5 units)
③Productive capacity: 42,000 tons/year
④Location: in the neighborhood of the existing plant (Suzhou City, Jiangsu Province, China)
⑤Start of operation of the new plant: March 2013

For more information, please contact:
Public Relations Center, General Administration Div. Tel: +81-3-6867-2135