Chubu Steel Plate to Expand Output for Nippon Steel

Chubu Steel Plate increases commission based plate production for alliance partner of Nippon Steel by utilizing the expanded capacity when Nippon Steel plans major plate mill maintenance outage at Kimitsu works in June and July. Chubu Steel Plate expects the higher production contributes to higher operation rate and lower production cost along with closer cooperation with Nippon Steel while Chubu Steel Plate tries to keep supply for the own customers.

Chubu Steel Plate entered into strategic alliance with Nippon Steel in 2007. Under the cooperation, they share the production capacity. Chubu Steel Plate makes monthly 1,000-2,000 tonnes plate for Nippon Steel. Nippon Steel provides the capacity during Chubu Steel Plate’s expansion works outage in 2009.

After the expansion, Chubu Steel Plate has room for higher production while the production decreased sharply in 2009 under very slow demand after Lehman shock. The production level recovered in late 2010 to the 70-80% level of the peak. The production keeps around 80% of the peak recently partly due to shorter lead time after the firm started to utilize bar-code based information management system for 12 sizes of SS400 grade products.

The firm can increase the production level after a series of training for the new facility. The firm tries to increase the operation rate by higher production for Nippon Steel. The supply volume for Nippon Steel is estimated to be several thousands tonnes per month while they still discuss the detail.

Chubu Steel Plate secures volume for the own customers but tries to maximize the cooperation production for Nippon Steel depending on the supply balance and raw materials situation. For Nippon Steel, Chubu Steel Plate supplies plate for construction and industrial machinery along with commodity grade products.