Marubeni-Itochu Steel Increases China Steel Process Capacity

Japanese major steel trading firm, Marubeni-Itochu Steel announced on Monday the firm adds a slitter at wholly owned Chinese subsidiary, MI Steel Processing Guangzhou for 900 million yen to meet growing demand for automobile and to improve quality. The subsidiary launches the operation of new slitter in April 2012 to increase the annual process capacity to 360,000 tonnes from 220,000 tonnes. Through the expansion, the subsidiary with high level process technology tries to follow growing demand for automotive stainless and aluminium parts.

MI Steel Processing Guangzhou increases the plant space by around 7,500 square meters for the No.3 slitter line to process steel with 0.15-1.5 millimeter thick and 1,300 mm width. The new line is to provide steel with precise cut surface for automobile, home electronics and office automation equipment. The flexible delivery also improves when stock capacity increases to 60,000 tonnes.

The Chinese subsidiary added No.2 slitter line for 600 million yen in May 2010 to process steel with 0.5-2.3 mm thick and 1,880 mm width. The firm originally designed the China’s sole high function slitter, which can process steel without damage on the surface. The line is to provide slitting and trimming service for automotive outer panel.

With No.3 slitter line, the Chinese subsidiary has annual 350,000 tonnes of stilling capacity with 3 slitters and 10,000 tonnes of leveling capacity with a mini-leveler. The capacity is second largest for Marubeni-Itochu Steel’s Asian steel process plant after 500,000 tonnes of United Coil Center in Thailand. The firm tries to improve the quality of processed steel various aspects including cut face and surface.