Nippon Kinzoku to Raise Ultra-Thin Silicon Steel Strip Capacity and Sales

Nippon Kinzoku, Japanese major stainless steel re-roller, announced on Wednesday the firm enhances the output capacity and the sales of ultra-thin silicon steel strip with less than 0.1 millimeter of thickness to meet the increasing demand mainly from Europe and the U.S.A. The firm aims to expand the annual sales volume to 2.3 times at 1,800 tonnes three years later from the present level. The firm will introduce new facilities in Itabashi plant, Tokyo, Japan and start the operation in or after October 2011. The capex is approximately 140 million yen.

The firm will install an additional surface coating line in Itabashi plant, which has been bottleneck of the productive processes, and raise the output capacity of high precision ultra-thin silicon steel strip in combination with the firm’s technical know-how for high precision rolling of stainless steel foil. The firm projects to increase ultra-thin silicon steel strip annual sales to 1,800 tonnes for 3 years from 780 tonnes in fiscal 2010 ended March 2011. The firm aims to increase the sales value by more than 1 billion yen.

Demand for ultra-thin silicon steel strip is expected to grow up globally from clean energy industry and medical industry. The demand is especially increasing from European and U.S. customers. Clean energy market is rapidly expanding mainly for photovoltaic power generation. In industrial and medical fields, downsizing and energy saving are required for electromagnetic products.

Nippon Kinzoku’s group company to produce and process ultra-thin silicon steel strip, Nikkindenji Kogyo posted net sales at 1.88 billion yen in fiscal 2010. Thin silicon steel strip accounted for 45% of the sales value while wound core 25% and other electric equipments 30%.