Ikeuchi Seiko Tries to Cultivate New Demand for Bright Bar and CHQ Wire

Kanagawa based major manufacturer of cold-finished steel bar and CHQ (cold heating quality) steel wire, Ikeuchi Seiko tries to keep the sales volume as high as the peak level before Lehman Shock during the new 3-year management term started in April 2012. In China, the firm plans to raise the output capacity at the joint venture with Sumitomo Corporation, Ikeuchi-Summit (Foshan) Precision Processing, to 1,500 tonnes per month during 3 years.

Ikeuchi Seiko’s sales volume recovered to 90-95% of the peak level in fiscal 2011 ended in March 2012 despite of the temporary shipment slowdown after the Japan Earthquake. The firm plans to increase the sales volume by 8% in fiscal 2012 compared with fiscal 2011, to the record high level.

Japanese automakers, those who are the main users of cold-finished steel bar and CHQ steel wire, have currently shifted productive operations to overseas and increased local material procurement. Ikeuchi Seiko tries to cover the domestic demand shrinkage by cultivating new customers and to keep the sales volume in fiscal 2013-2014. The company also tries to improve the product quality continuously with domestic investment at 200 million yen per year.

In China, the firm will raise the output capacity of Ikeuchi-Summit (Foshan) Precision Processing to yearly 18,000 tonnes of the first-phase plan earlier. The joint company enters mass production in May and sells the products mainly to Japanese automakers. Ikeuchi Seiko eyes the demand cultivation in non-Japanese automakers including European, US and Chinese car makers or non-car industries. The joint company is expected to increase the employee number to 25 in October 2012 from present 18.