Sumitomo Metals to Establish Higher Grade Line Pipe Production System

Sumitomo Metal Industries tries to establish mass production system for high tensile steel line pipe at Kashima works for around 10 billion yen starting commercial production by fiscal 2010 starting April 2010. The firm tries to meet growing demand for high valued pipe when world major gas transportation projects require more pipe with high tensile and light weight. The firm expands refining capacity at the steel making shop to make purer steel with less nitrogen in order to improve toughness at welding part. The firm also introduces new cooling facility at plate mill to roll plate with X100 and X120 grade at lower temperature than 400-500 degree centigrade for X70. The firm increases expansion capacity at large diameter pipe making plant to improve productivity for high tensile steel pipe. The firm considers additional investment including press machine and plate transport facility at large diameter pipe plant for mass production of X120 grade pipe. The firm estimates the demand of high valued line pipe from X65 to X80 is annual 3-4 million tonnes worldwide. The supply is short for the demand at only 2.8 million tonnes with 1 million tonnes by Europipe and total 1.8 million tonnes by Japanese mills including Nippon Steel, JFE Steel and Sumitomo Metals. Sumitomo Metals has leaded the material development in the line pipe industry. The firm provides pipe with X80 grade of American Petroleum Institute for land application and pipe with X70 for ocean floor pipeline. The firm tries to develop higher grade products with expectation users start to use X100 and X120 grades of pipe around 2010.