Kanematsu Builds Up Steel Supply Chain in North America

Japanese major business house, Kanematsu plans to build up supply chain of steel products in North America. The firm will make proposal for logistics function to users including processing bases when the demand is expand for Japanese home electric appliance makers in Mexico. The firm exports stainless steel products, wire rod for valve spring of automobile, oil tube to North America. In July, the firm increased resident officer in North America to enhance connection with market. The firm is mulling establishment of steel processing and parts manufacturing bases in Asia or India, and will grow business by investment in overseas.

Kanematsu has 8 sales bases in North America and the demand is increasing for export of oil tube due to active development of shale gas. Steel demand is expanding when Japanese home appliance and automobile makers are increasing investment in Mexico. Automobile industry in North America is increasing production after Lehman’s fall. Consequently, the firm expects the demand increases for wire rod, special steel, casting and forging products for export. The firm will secure total delivery including logistics function to meet the demand.

The firm plans around business investment in Asia and plans to construct automobile parts manufacturing plant with users in Thailand. The firm exports special steel products India through local agency. However, the firm will develop local users.

The firm’s export rate is over 10% for wire rod, 8% for casting and forging products for automobile, 40% for carbon steel sheet and steel tube and 30% for special steel. The firm exports wire rod for valve spring of automobile, oil tube, stainless sheet, casting and forging products to Europe and North America, and special steel to Asia.

The firm has coil center in Guangdong, China. The coil center processes and sells monthly 4,500 tonnes of surface treated steel sheet and cold rolled sheet. The output in China recovered from aftermath by disaster of earthquake.