BNA to Keep Full Capacity Operation in 2012

Chinese automotive steel making joint venture of Nippon Steel and Baosteel group, Baosteel-NSC/Arcelor Automotive Steel Sheets (BNA) plans to keep full capacity operation in 2012. The firm tries to meet growing demand from transplants of US, European and Japanese automakers. The firm expects higher demand when local automakers use high grade flat steel more and they increase local procurement.

Chinese automobile production was 18.42 million units in 2011 compared with 20 million units of original outlook by the government. The commercial vehicle production was slow under financial squeeze while passenger car production increased. BNA kept monthly near 200,000 tonnes since July 2011 when Japanese transplants recovered the normal production from supply chain disruption due to the major earthquake.

High grade automobile production increased in January-February from same period of 2011, according to BNA. The firm expects Chinese automobile production reaches 19 million units in 2012.

BNA and Baosteel have more than 50% of market share in Chinese automotive flat steel. Their share is higher for transplants of Japanese automakers. BNA started operation of No.3 continuous galvanizing line in February 2010 when the users use more galvanealed flat steel. The firm has total 1.25 million tonnes of output capacity at No.1-3 lines while the firm expanded the cold rolling capacity to 2.2 million tonnes in 2010.

Japanese automakers try to meet growing demand in China. They increase local procurement of materials for better competitiveness. BNA tries to meet the higher local demand through the expansion.