Nippon Metal Industry Seeks Next Growth with New 3-Year Plan

Japanese major stainless steel maker, Nippon Metal Industry drew up a new 3-year management plan toward March 2011 after the firm had achieved the former 3-year plan to March 2009 one year ahead. The firm plans capital expenditure at total 30 billion yen during the new 3-year plan, 15 billion yen for renewal of steel making processes in Kinuura works and 15 billion yen for cold rolling mills for high valued products such as non-nickel stainless steels.The firm will seek alliances with overseas makers as well as strengthening cooperation with Nisshin Steel and Sumitomo Metal Industries. The firm will reduce carbon oxide gas emission by marine transport with improvement of the sea berth and the introduction of a melting furnace with 2 billion yen capex.Nippon Metal Industry aims to expand production of the less nickel steels, “D series,” to 10,000 tonnes per month from current 7,000 tonnes by increasing the export and starting commercial sales to domestic market. As for precision rolling products, the firm will increase the output to above 2,000 tonnes from current 1,200 tonnes. The firm also seeks cheaper material sources. The firm keeps the total production at 335,000 tonnes per year while improves the quality of the products.The firm will educate human resources for overseas and enhance the subsidiaries in Singapore and Malaysia. The firm builds up young engineers for technology sustainability and advances development of new products, especially sales expansion of “D series” products for domestic market.