Sumitomo Metal Industries tries to accelerate distinctiveness in steel plate marketing. The firm improves the contract users’ confident by supplying mass production middle grade products stably. The firm tries to keep full capacity operation for better profitability while the firm expands sales of high grade products for energy and projects. The managing executive officer Kengo Shimizu said the plate unit tries to keep more than 10% of return on assets under severe business condition.
The firm expands distinctiveness in high grade products line for energy industry through strategic investment. The firm added new reheat furnace in 2007 and expanded heat treatment facility in 2009 to expand production capacity of high grade products including materials for large diameter pipe, high strength and thicker plate and plate with 9% nickel for liquid natural gas tank. The firm added new Sumitomo dynamic accelerated cooling system in 2010 for better control of the world widest cooling speed variation to make thicker plate with high strength, better toughness in low temperature and better weldability. The firm adds world largest 7,000 tonnes leveler in December to complete the series of the investment. The firm improves the customer confidence through the wider products line through the strategic investment. The firm signed memorandum of understanding for long term supply with 2 users in energy industry. The firm already got MOU with 5 energy companies including 2 mining machinery makers and one South Korean shipbuilder. The firm expects the total supply volume reaches annual 400,000 tonnes level, which represents 30% of the planned plate sales in fiscal 2011 ending March 2012. The firm also expands collaboration with contract users. The firm seeks efficient development through the cooperation with users by combining the effort and resources. The firm started the cooperation activity in 2004 and now has joint projects with 5 users. The firm expects new achievements in second half of fiscal 2011 through mixture of the each effort. The firm expects the plate production capacity is around 200,000 tonnes lower in fiscal 2011 than 2.1 million tonnes of name plate capacity due to damage from the major earthquake and motor renewal works while the capacity was around 1.8 million tonnes in fiscal 2010 due to accelerated cooling system works. The firm expects full capacity operation fiscal 2012 after the distinctiveness marketing effort. The firm tries to keep stable sales volume even in severe market condition through joint works from manufacturing and marketing to research and development units for better customer satisfaction.