Suncall Increases Production Capacity by 10% in F2011

Suncall, Japanese special steel wire maker, builds up production capacity of the head plant in Japan to meet steady demand for export of valve spring wire for automobile engines. Suncall implemented capex to raise the capacity by about 30% in fiscal 2010 ended in March 2011. In fiscal 2011, the firm plans additional capacity expansion by about 10% to 1,100 tonnes per month.

The head plant processes special steel wire rod in Japan, cutting the surface, adjusting the metal texture, drawing the wire rod to the required size for valve spring and increasing the strength by oil temper process. The firm delivers the intermediate products to Toyota plant in Aichi, Japan and the subsidiary in Kumamoto, Japan, Suncall Kikuchi, as well as offshore sites in the U.S.A., Thailand and China, and complete valve spring.

The firm’s valve spring export to emerging countries increased by 20% in fiscal 2010 from fiscal 2009 along car market growth in the countries. The firm expanded the capacity of the head plant to about 1,000 tonnes per month in fiscal 2010.

The sales of the firm’s precision performance material division increased by 17.9% to 3.61 billion yen in fiscal 2010 from fiscal 2009. The demand was steady for valve spring or precision deformed materials. Suncall expects the demand would grow up at overseas in fiscal 2011.