Hitachi Metals announced on Wednesday the firm builds new production line at the automotive casting making subsidiary, Nam Yang Metals in South Korea for around 2 billion yen. The firm adds new efficient and precise line with monthly 3,000 tonnes of output capacity launching summer 2012 to meet growing demand in South Korea. Hitachi Metals establishes total monthly 15,000 tonnes of supply ability in Japan, South Korea and North America to follow growing demand.
Nam Yang Metals increases the output capacity from monthly 6,000 tonnes to 8,000 tones through the expansion. The firm supplies automobile parts including steering knuckle and manifold for Hyundai Motor and General Motors’ operation in South Korea. Nam Yang Metals’ production decreased to monthly 2,500 tonnes after Lehman shock. The production is full capacity level now. The firm decided the expansion with expectation for higher demand in emerging countries. The firm adds melting furnace, hot metal pouring machine and casting machine in existing plant building. The firm stops an old line with monthly 1,000 tonnes of output capacity after the new line starts the operation. Hitachi Metals eyes potential automotive parts making operation in Asia. With the strategic investment, the firm tries to follow growing demand especially in emerging countries.