Neturen Co. to Build New Plant in Japan and Offshore Countries

Japanese major induction heat treating company, Neturen Co. builds new heat treatment plant in North Kanto area. The firm eyes plant construction of high strength steel spring wire and hollow steel rack bar in offshore countries.

The president Tetsukazu Fukuhara said the strategy at a presentation for result of fiscal 2011 ended March 2012 on Thursday. The firm plans to increase market share in induction heating of very large construction machinery parts by building state-the-art plant. The plant will integrate Neturen Co.’s heat treating subsidiary, Neturen Ryugasaki in Ibaraki to improve lead time and logistic cost. Neturen Co. is under location selecting process for the new plant.

Neturen Co. plans to increase sales of the spring wire by 19.2% to 8.83 billion yen for fiscal 2012 from fiscal 2011. Mr. Fukuhara expects the wire could be a main in future. He said the firm eyes potential new plants in countries in Association of Southeast Asian Nations, Latin America and Europe. He said the firm eyes new offshore plant for rack bar of power steering parts in three regions.

Neturen Co. targets 60 billion yen of consolidated sales with 30% of offshore sales rate for fiscal 2014 compared with around 45 billion yen of total sales with 15% of offshore sales in fiscal 2011. The firm plans 4.2 billion yen of sales from Chinese subsidiary, Neturen (China) Slewing Bearing, which started the operation in December 2011.

Neturen Co. plans expansion of US spring wire making subsidiary, Neturen America and Chinese subsidiaries. Neturen Co. eyes potential new toll processing business in offshore countries. The firm reviews local steel makers’ spring wire material to use at subsidiaries in China and USA.