Nippon Chutetsukan to Expand Output of Inner Coating Iron Pipe

Japanese major maker of casting iron pipe, Nippon Chutetsukan advances capital investment to upgrade production facilities for earthquake resistant pipe and internal coated pipe by epoxy resin powder. The firm plans 300-400 million yen of investment in fiscal 2006 ending March 2007 for its main production base, Kukisyobu plant in Saitama Prefecture, to reinforce the pipe coating line with epoxy resin powder. The firm aims to increase the production ratio of ductile iron pipe at the plant to more than 60% of earthquake resistant pipe and more than 40% of internal coated pipe, when market demand shifts from ordinary pipe to advanced ductile pipe.Nippon Chutetsukan aims to become the integrated iron pipe maker by expansion of the engineering business based on sales and production of water system materials along its 5-year management plan to fiscal 2009. The firm targets 27 billion yen of net sales and above 8% of ROS (return on sales) in fiscal 2009.The firm regards advanced ductile cast-iron pipe as its standard item and reinforces the production system for the product, which meets market needs for environment, earthquake resistance or longer operation life. In fiscal 2005 the firm introduced new production lines at Kukisyobu plant for intermediate caliber pipes with 300-450 millimeters diameter and large caliber pipes with 500-900 mm diameter. With the new lines the firm can manufacture earthquake resistant iron pipe with 900 mm diameter at maximum. The firm also constructed the production line for center shed deformed pipe with over 250 mm diameter.In fiscal 2006 Nippon Chutetsukan introduced a new heating furnace and coating equipment at Kikushobu plant in May. The firm can produce epoxy resin powder coating pipe with 900 mm diameter at maximum with new equipment. The firm also plans output expansion of epoxy resin powder coating pipe toward August 2006 for products with 75-250 mm diameter by reinforcing the heating furnace at the plant in order to reduce heating lead time.