Marubeni-Itochu Steel Starts Cold-rolled Strip Production in China

Marubeni-Itochu Steel announced on Tuesday Jiaxing Hongzhong Steel Sheets Processing (JHSP), the firm’s subsidiary and steel sheet processor in China, starts cold rolling and annealing service for cold rolled steel strip. Mishina Matsubishi, Japanese major cold rolled steel strip maker, gives technical supports to JHSP. JHSP plans to start commercial operation in January 2012 to follow the increasing demand for high grade steel strip applied to home appliances and automobiles in China.

JHSP introduces a cold rolling machine with 1,300-tonne monthly rolling capacity with 5 annealing equipments and a small slitter. The total investment is 800 million yen. Chinese users have depended on imported cold-rolled steel strip with highly flat surface from Europe, South Korea and Taiwan. Marubeni-Itochu Steel aims to establish local supply system of high grade cold-rolled strip in China.

JHSP’s capital fund is US$ 17 million (approximately 1.4 billion yen) wholly invested by Marubeni-Itochu Steel. The production capacity is 14,000 tonnes per month with 2 large size slitters, 4 high-speed continuous press machines, a large size annealing furnace and 2 aluminum die-casting equipments. The employee number is about 280 currently.

Mishina Matsubishi was established in 1934. The capital fund is 46 million yen. The firm supplies cold-rolled steel strip for engine parts, automotive components, braking parts and electronic devices.

Marubeni-Itochu Steel now operates has 4 coil centers in China. The firm schedules capacity expansion of Thai coil center in November 2011. In India, the firm established a steel processing and steel tube manufacturing company in March 2011 while a coil center for electric steel sheet is scheduled to open at the end of this year.