Nagoya based cold finished steel bar maker, Suzuhide Kogyo established cold finished bar making joint venture with Japanese major steel trading firm, Metal One in Wujiang, Jiangsu of China. The joint venture makes deformed bar products for linear motion guide and other precision bar products. The firm will launch commercial production in March 2013. The firm targets 500 tonnes per month of output of in first phase and eyes 1,000 tonnes in future.
Suzuhide Kogyo makes deformed steel bar products at headquarters plant and Yamaguchi plant in Japan. The firm operates the plants at near full capacity level due to strong demand for linear motion guide. The firm decided the investment for the new plant in China when the firm’s largest deformed steel bar products user, Japanese THK Co. shifts the main operation in China. Suzuhide Kogyo’s joint venture expends US$ 29.98 million for the plant in China. Suzuhide Kogyo controls 95% of the joint venture with US$ 15 million of capital while Metal One has 5% share in the joint venture. The new company builds the plant with 9,613 square meters of floor space on 23,100 square meters of site for the first phase. The plant will add a building with 5,200 square meters of floor space for the second phase. Suzuhide Kogyo will hire around 80 employees and plans training in Japan as early as in this summer. Suzuhide Kogyo established the joint venture on December 1, 2011. The construction of the plant started on December 6. The construction will complete in October to set equipments for pickling, heat treatment and drawing.