Maruichi Steel Tube Targets 35% Offshore Sales in F2014

Maruichi Steel Tube announced on Wednesday the firm targets 35% of offshore sales for fiscal 2014 under the new 3-year plan starting in fiscal 2012 compared with estimated 22% in fiscal 2011. The firm tries to secure 20% offshore profit rate in 20 billion yen of operating profit for fiscal 2014 compared with estimated 3.2% of 14.8 billion yen of the profit in fiscal 2011.

The estimated results in fiscal 2011 is less than targeted 22 billion yen of operating profit under the current 3-year plan ending fiscal 2011 due to severe business condition. Under the new 3-year plant, the firm tries to regain the profit level realized before Lehman shock.

The firm invests the resource for offshore pipe business in automobile, motorcycle and energy while the firm tries to follow Asian construction market. The firm launches No.2 continuous galvanizing line and color coating line at Sun Steel Joint Stock Company (SUNSCO) in Vietnam and expands pipe and flat steel business in Asia. Maruichi Steel Tube plans to enter into automobile and energy business at Leavitt Tube of USA while Maruichi Steel Tube tries to launch automotive steel pipe plant in Mexico.

The firm consolidates Tokyo plant in Ichikawa, Chiba into Tokyo No.2 plant in Ichikawa to improve efficiency. The firm launches sales unit for special products in Sendai, Miyagi in April 2012 and Kitakami sales office in Iwate in August for better sales network. The firm eyes stainless pipe business for next growth.