NSSC Ties Up with Allegheny Ludlum for Auto Exhaust Stainless

Nippon Steel & Sumikin Stainless Steel (NSSC) announced on Monday the firm agreed with Allegheny Ludlum, which is stainless and titanium maker of USA, for production and sales license of stainless cold rolled flat steel for automotive exhaust manifold. The firm tries to establish stable supply system for local transplants of Japanese automakers and auto-parts makers. NSSC ships hot rolled coil without pickling for Allegheny to make cold rolled products. The agreement is the first offshore alliance for NSSC under the offshore strategy. The firm already shipped trial base and the partner will ship sample for auto- and parts makers starting the commercial shipment. They try to ship the products for US automakers including Ford Motor and General Motors. NSSC supplies NSSC FHZ grade product used for exhaust manifold. The ferrite stainless product, which contains 13% chrome, 1% silicone and small portion of niobium, has better high-temperature oxidizability and heat exhaustion property. The alliance is the first offshore business for NSSC without offshore operation. NSSC exported the cold rolled product but the firm couldn’t ship for US due to antidumping duty for stainless cold flat steel and pickling steel. NSSC tries to improve the US supply system for automotive exhaust parts through cooperation with subsidiary of Sumitomo Pipe & Tube. Automotive flat steel represents around 20% of production for NSSC. Japanese automotive exhaust manifold is made with chrome series stainless while US Big 3 automakers use casting iron parts.