Sumikin Weld Pipe Builds Up Stable Production System at 10,000 T/M

Japanese major steel pipe maker, Sumikin Weld Pipe will build up stable production system at 10,000 tonnes per month when the firm seeks higher profitability and productivity under much fluctuation of seasonal demand. The firm aims to double the selling volume of new-developed products such as spinning penetration steel pipe pile to 40,000 tonnes per year to approach the demand fields for private sectors while the demand stays low for public sectors.Sumikin Weld Pipe is the wholly owned subsidiary of Sumitomo Metal Industry to produce spiral steel pipe for water pipe, gas pipe, pile and pole. The subsidiary closed the factory in Osaka Prefecture and integrated domestic production to the factory in Ibaraki Prefecture in fiscal 2004 ended March 2005, when the market had shrinked for public sectors. Sumikin Weld Pipe could post profits in fiscal 2005 after 3 years thanks to the productive integration and the sales expansion. The pipe production volume increased to about 77,000 tonnes by 3.9% in fiscal 2005 from fiscal 2004.The firm aims to reduce production cost by 10% by the improvement of productivity and the stable operation thanks to automation or upgrading of control precision. The firm plans total 700 million yen of investment for 3 years to fiscal 2008 to build up the joint equipment for long sized pipes and the widening of storage sites for the expansion project of Haneda Airport.