Sumitomo Metals to Expand Plate Output to 2 million tonnes by 2007 end

Sumitomo Metal Industries expands the plate output capacity from current 1.9 million tonnes a year to 2 million tonnes to meet higher demand for high valued products used in shipbuilding and energy industry. The firm starts the operation in October-December 2007 after the expansion at Kashima works including a new reheat furnace and renewal of end cutting shearing machine for around 7 billion yen. The firm tries to expand the high valued products weight under the mid-term plan, in which the firm tries to focuses on energy and other high valued applications. Worldwide plate demand is firm for shipbuilding and development of liquid natural gas. Especially the demand surges for high valued plate products including materials of UO pipe used to produce, transport and store oil and gas, the market of which Sumitomo Metals has advantage. Sumitomo Metals increased the plate output at Kashima to more than 1.9 million tonnes in fiscal 2004 and 2005 from 1.85 million tonnes in fiscal 2003, 1.8 million tonnes in fiscal 2002, 1.7 million tonnes in fiscal 2001 and 1.6 million tonnes in fiscal 2000. The firm decided the expansion to meet strong demand though the firm manages to meet the order by improving capacity utilization, yield and productivity through the technology grade up. The firm adds a reheat furnace, which heats slab to 1,200 degrees centigrade before plate rolling process. The firm uses coke oven gas, which is made in process to make coke from coking coal, as the energy for the furnace. The firm tries to expand the plate output by adding a new reheat furnace to current 3 furnaces. The new furnace with 11.8 meters width and 32 m length can heat 2 slabs with 5 m width each at the same time.