SeAH Steel of Korea Enhances Line Pipe Supply System

SeAH Steel, South Korean major steel tube maker, ordered two press bender machines for Pohang works. The firm invests 95 billion won to introduce new press benders with accumulative output capacity at 200,000 tonnes per year. The manufacturable size enlarges to maximum 64 inches outer diameter from present 56 inches, to supply the products for line pipes of oil and gas development projects in Asia-Pacific region. SeAH Steel builds up global supply network for large diameter steel tube including the other productive base in UAE.

The firm ordered a JCO bender and a JCOE bender to SMS Meer, German machine maker. The JCO bender which can manufacture the size with maximum 12 meters length will start operation in July 2012. The JCOE bender can manufacture steel pipes with maximum 18 meters length which will start operation in March 2013. SeAH Steel aims to provide long and thick steel pipes to Southeast Asia, Australia, Russia, North and South Americas.

SeAH Steel’s UAE plant has production capacity at 150,000 tonnes per year with a press bender for maximum 56-inch diameter and a roll bender for maximum 120-inch diameter. The plant supplies steel pipes to UAE, Middle East, Europe and Southeast Asia.

SeAH Steel plans 160 billion won of capex in CY 2012 mainly for large diameter steel tube equipments in Pohang works. Pohang works will start operation of a quench tempering equipment in July 2012, shifting to self-manufacture from outsourcing. The firm upgrades steel tube grade of API to L80 and P110 from current J55. The firm concentrates managing resources into energy fields when the demand is low for building materials.

SeAH Steel plans to increase domestic steel tube output by 29% to 1.1 million tonnes, the record high volume in Pohang works, in CY2012 compared with CY2011. The production increases mainly due to acquisition of SPP Steel Tube which has the capacity at 270,000 tonnes in March 2012. SeAH Steel plans to raise the export volume ratio from present 40% since domestic demand is stagnant.