Nippon Steel’s Kamaishi to Expand High End Wire Rod Supply for Automobile

Nippon Steel’s Kamaishi works improves the supply ability of high grade products for automobile. The works increases high end products including wire rod for steel cord and cold heading wire. The works improves the advanced technology to offer high valued products in order to reduce the users’ processes while the works improves the supply chain including ocean shipping logistics. The works also reduces variable and fixed cost through various efforts including better yield for high valued products and 50% target for jointed billet endless rolling for international competitive wire rod production base.

The works finishes almost all repair works in April for damage by the major earthquake in March 2011. The works supports local community’s rebuilding activity while the works improves the competitiveness. The works accelerates the efforts for better technology and cost structure along with the higher valued products when the activities delayed due to the quake.

The high end automotive products including wire rod for steel cord and cold heading wire represent around 60% of the works’ production while the products for automobile represent around 70%. The works tries to establish only one and number 1 technology to serve local automobile industry when the industry expands the local production in northeast Japan.

The works increases the endless rolling, which is process to roll in line welded billet, from current 20% to 50%. The works tries to pave the way to the target in the year through improvement of the maintenance technology for stable operation.

The works focuses the cost reduction effort on better operation technology. The works improves the yield of high valued products through better operating technology while the works reduces the variable cost through hither endless rolling rate. The works also improves cash flow by reducing inventory.

Kamaishi port will have renewed port entrance breakwater while discussion continues for other port facilities rebuilding. With renewed port facilities, the port regains high performance as export base for North America and other areas. The port will contribute to better automobile supply chain in the area. The works tries to contribute to the supply chain by increasing high valued products supply.