Hitachi Metals Starts Heat Treating Service in Vietnam

Hitachi Metals announced on Wednesday the firm starts heat treating service for tool steel in Vietnam. The firm expects tool steel demand could expand for mold tools with redeployment of manufacturing plants from China or domestic production growth of motorcycles and electronic components. Provision Special Steel, Hitachi Metals’ distributing agent in Vietnam, introduces a heat disposal furnace in Hanoi branch and operates heat disposal service around Hanoi. The capacity of the furnace is 300,000 tonnes per year.

Hitachi Metals sends sales representatives and heat treating engineers from Japan to Vietnam. The firm starts the service in mid February and aims to receive orders at 20 tonnes per month within 3 years. The firm targets to expand the annual sales of all tool steel business to 1 billion yen 3 years later in Vietnam.

Tool steel market in Vietnam is 100 million yen per month. Hitachi Metals accounts for 40% of the market. The demand is expected to increase with economic growth in the medium and long terms. The firm has sold tool steel at several thousand yen per month to Provision Special Steel. Because the market is growing, Hitachi Metals adds heat disposal service and reinforces the business.

Hitachi Metals has the sales bases of tool steel in China, Taiwan, Singapore, Malaysia, Thailand, Philippine, Indonesia, Vietnam and India. The firm plans to enhance the overseas business.