Sanyu to Double Kyushu’s Operation Rate in F2011

Osaka based cold finished steel bar maker, Sanyu tries to increase the production volume to monthly 1,000 tonnes including cold finished bar and steel wire for cold heading at the subsidiary in Kumamoto in fiscal 2011 started April. The subsidiary increases the operation rate gradually to the target. The firm builds new warehouse in autumn to meet the higher production and shipment along with better efficiency.

The subsidiary started the operation in December 2010 as the third plant for Sanyu and the first plant in Kyushu. The subsidiary with automation pickling line, STC annealing furnace and continuous drawing machine has around 40,000 tonnes of annual output capacity for cold finished bar and steel wire for cold heading.

The firm makes just more than 500 tonnes per month. The firm makes small lot steel wire for cold heading while the firm is still under process to get approval from the users for the products. The firm increases the production rate gradually while Sanyu shifts the production from Yao plant in Osaka to the subsidiary in Kumamoto.

The subsidiary builds new warehouse with more than 2,000 square meters of space on adjacent land of the plant. The firm secures more deposit space to meet growing production volume by launching the warehouse in the year.

The subsidiary tries to increase the production to monthly 1,000 tonnes or more level in fiscal 2011 depending on automobile demand in Kyushu. The firm tries to post first profit in fiscal 2012 after the estimated loss in fiscal 2011.

Sanyu increased the production bases by launching the subsidiary in Kyushu after the firm closed the plant in Muroran, Hokkaido to reduce the production base to total 2 plants. The firm tries to improve the business base including headquarters plant and Yao plant in Osaka and Kyushu plant as the major Western Japan based wire products maker based on Nippon Steel’s wire rod.