Nippon Steel Enhances Steel Sheet Service Center Capacity in China

Japanese steel maker and large dealers, Nippon Steel, Metal One and Nippon Steel Trading announced they decided the investment rate into a new integrated company, combining 2 coil centers that are Shanghai Jiarigangbanzhipin Youxiangognsi and Suzhou Nippon Steel Service Center at the end of January 2009. They will enhance the competitive processing power of high grad steel sheet in China when they prospect the sales competition of high grade steel sheet becomes hard in the country. Nippon Steel will advance streamlining for other processing centers in China.

They will change the investment rate in the new integrated processing center, 55% by Metal One, 35% by Nippon Steel Trading and 10% by Nippon Steel. The new processing center will reduce the processing cost by cutback.

Chinese steel makers are improving the production volume and the quality of high grade steel sheet such as electric-galvanized steel sheet or non-directional magnetic steel sheet. Chinese government limited processing trade of steel sheet. Because business situation is changing, Japanese companies supposed necessity to enhance steel sheet processing center.

The investment rate in Shanghai Jiarigangbanzhipin is 79.94% by Metal One and 10.93% by Nippon Steel Trading. Shanghai Jiarigangbanzhipin was established in 1994, which has 3 large slitters, 4 levelers, 4 down-shearings, a 500-tonne presser and a 300-tonne presser. The processing capacity is 150,000 tonnes per year.

The investment rate in Suzhou Nippon Steel Service Center is 90% by Nippon Steel Trading and 10% by Nippon Steel. Suzhou Nippon Steel Service Center was established in 2003, which has one large slitter, one mini slitter, 2 levelers, and is introducing another slitter and a mini slitter for magnetic steel sheet. The processing capacity reaches 60,000 tonnes per year.