Nisshin Steel started deliberation on overseas productive operation for special steel sheet when Japanese car makers are aggressively expanding offshore operations and requiring local material supply. Nisshin Steel targets Asian market mainly China, eyeing downstream operations including establishment of cold rolling and annealing lines through various-pattern operations such as joint business with local steel makers.
Nisshin Steel has produced surface treated steel sheet at Wheeling Nisshin, an existent subsidiary in the U.S.A., while raised production capacity of stainless steel sgeer at Ningbo Baoxin Stainless Steel in China and constructed Bahru Stainless in Malaysia. Meanwhile, the firm hasn’t produced special steel sheet at overseas yet. Nisshin Steel is the leading maker of high carbon steel sheet in Japan. The firm currently installed a new cold rolling mill and an annealing line in Sakai iron works, Osaka, Japan with 18 billion yen capex to expand automotive steel supply. The firm is trying to improve productivity through integrated operation among Sakai iron works, Osaka iron works and Kanzaki plant. Hot rolled sheet is supplied from Kure iron works. Sakai iron works’ present output is higher than 30,000 tonnes per month, which doubled from pre-expansion and reached almost full operation.