Sumitomo Pipe & Tube Targets 40% Higher Output in Guangzhou

Automotive tube maker, Guangzhou YOU-RI Automotive Parts (GYA, which is joint venture by Sumitomo Pipe & Tube, Sumitomo Corporation and Nippon Steel, targets monthly 700 tonnes of output in the year, which is around 40% higher than previous year. The joint venture converted the processing facility layout to improve the efficiency. The firm adds new cutting machine and processing facility to expand the monthly cutting capacity to 700,000-800,000 units from current 500,000 units. Sumitomo Pipe & Tube and Sumitomo Corp. established GYA in November 2003 to meet growing demand for automotive steel tube around Guangzhou when Chinese automobile output increases and Japanese automakers expand the capacity around Guangzhou. Nippon Steel joined GYA in December 2004 by purchasing a part of share. GYA made money for full year 2006 for the first time since the launch. GYA operates at more than 500 tonnes per month. Sumitomo Pipe & Tube said GYA tries to increase the output to 700 tonnes in the year. GYA tries to meet growing demand from transplant of Japanese automakers and increases the material tube supply to Guangzhou Asahi-NS-Mit Automotive Parts, which is transplant of Saitama based cold drawing tube maker, Asahi Steel Tube.