Nisshin Steel to Launch ZAM Production at US Subsidiary

Nisshin Steel starts production of zinc, aluminium and magnesium coated steel, ZAM at the subsidiary, Wheeling-Nisshin in USA as a first step for globalization of the high corrosion resistance steel. The subsidiary invests around US$ 25 million to convert the line at headquarters plant in West Virginia to start operation in second half of 2013. Nisshin Steel eyes potential ZAM production in Southeast Asia for the globalization program.

Nisshin Steel targets monthly 100,000 tonnes of sales through the globalization. The firm already has 60,000 tonnes of production capacity at Toyo, Sakai and Ichikawa plants. The firm launches the US production to meet demand from local users including transplants of Japanese manufacturers.

ZAM with 6% aluminium and 3% magnesium has 10-20 times of corrosion resistance. The product is used for housing structure and other applications including automotive parts and appliances.

Nisshin Steel launched Wheeling-Nisshin in 1984 as joint venture with US integrated steel maker. The venture started operation of No.1 galvanizing line in 1988 and started No.2 line in 1993. Nisshin Steel acquired remaining share in the venture to control 100% of the plant with annual 600,000 tonnes of output capacity.