Nippon Steel’s Steel Pipe Division Runs Mid-Term Strategy

Junichi Uchida, manager of pipe & tube division of Nippon Steel, explained the division strategy along Nippon Steel’s mid-term plan from fiscal 2006 ending March 2007 to Japan Metal Bulletin. The division aims continuous growth for both profits and products quality in business fields including energy, manufacturing industries and automobiles, taking advantage of its advanced technology. The division seeks the product composition less susceptible to the market fluctuation through supplying ordinary products which could represent more value for users. The division targets high grade products as strategic commodities. Mr. Uchida said that pipe & tube division would invest mainly for high-strength line pipe for energy field and put new items made by high-tension steel for automobile’s underbody components. He also said the division would approach value analysis such as cost reduction and process omission for transmission components users. He explained about global strategy of the division. SNP, a joint venture in Thailand to manufacture steel pipe for machine structures in automobiles, continues full operation and favorable management condition, he said. SNP’s subsidiary in Indonesia would start operation in January 2007 to produces steel pipe for motorcycle. In China the division established a joint venture with Mitsui Corporation and Asahi Kokan Kogyo and advances the line construction to produce drawn steel pipe. The division raises another joint venture to manufacture steel pipe for automobile in China with Sumitomo Corporation and Sumitomo Pipe & Tube. He expected future growth of each JV when Japanese automakers are starting their domestic operation in China.