JFE Shoji Trade to Expand Steel Processing Capacity in Guangzhou

JFE Shoji Trade adds a leveler at the Chinese coil center, Guangzhou JFE Shoji Steel Products to increase the annual processing capacity by around 50% to around 140,000 tonnes by September. By expanding the supply ability, the firm tries to improve the flexible delivery for the users’ convenience under growing demand for automobile and appliances in southern China. JFE Shoji Trade eyes new sales office or processing plant in inner part of China to develop the market. The firm tries to expand the processing capacity in India to follow growing offshore market, especially in emerging countries.

Guangzhou JFE Shoji Steel Products is completing new plant building next to existing plant. The firm decided the expansion to follow growing demand for high grade steel products when Chinese automobile production increased by around 30% to 18 million units in 2010 from 2009 while the coil center expanded the capacity by adding processing facilities for motor core for compressor and automotive blanking machine.

The coil enter started the operation in June 2006 with a part of business from Dongguan JFE Shoji Steel Products in Dongguan. Guangzhou JFE Shoji Steel Products has annual 90,000 tonnes of processing capacity with slitter, leveler and press machine. With the expansion, JFE Shoji Trade has total around 270,000 tonnes of steel processing capacity in southern China and around 500,000 tonnes of processing capacity in total China.

JFE Shoji Trade tries to enter into inner Chinese steel market when the economy grows rapidly. JFE Shoji Trade’s president Mikio Fukushima said the firm eyes new processing plant in inner China along with new sales office. The firm tries to expand the business to local buyers by improving the credit exposure management in the country while the firm has provided the service mainly to transplants of Japanese manufacturers. As a part of the effort, the firm launches new colored flat steel making joint venture with JFE Steel and Suzhou HeSheng Special Material of China to make high grade flat steel for appliance and construction applications.