SEI Group to Increase Steel Code Production to 8,600T/M in 2013

Sumitomo Electric Industries (SEI) plans to increase steel code production and sales to 8,600 tonnes per month in 2013, almost double of the current volume. Steel code production by Sumitomo (SEI) Steel Wire, the group company headed in Tochigi, Japan, is estimated at 4,500 tonnes per month in fiscal 2010 ending in March 2011. In addition to this, joint productive companies in Thailand and China will start or increase steel code outputs. Meanwhile, Sumitomo (SEI) Steel Wire will transfer its operation for exporting products to overseas plants gradually. Saw wire production is planned to increase by 24% to 520 tonnes per month in the second half of fiscal 2011 from the present.

SEI holds 70% shares in a joint company in Thailand, cooperatively established with Hyosung Corporation, South Korean major maker of textile tire cord. The plant construction will complete in March 2012. The output is scheduled at average 880 tonnes per month in 2012 and 3,000 tonnes per month in 2014. Sumitomo (SEI) Steel Wire plans to transfer 1,050-tonne exporting production to the joint company.

This transfer includes 300-tonne export from Tochigi to Thailand, 400-tonne export from Tochigi to North America and Africa as well as intermediate products supplied from Tochigi to Indonesia. Sumitomo (SEI) Steel Wire will also transfer its downstream lines partially to Thai joint plant.

Another joint company in China, 30% controlled by SEI and 70% by Hyosung, presently produces steel cord at 900-1,000 tonnes per month. The production is scheduled to increase to 2,000 tonnes in the second half of 2011. Sumitomo (SEI) Steel Wire will transfer 150-tonne production to this plant.

As to saw wire, SEI’s 100% subsidiary in Taiwan will start production in June 2011. The output is scheduled at 200 tonnes per month in 2012. Sumitomo (SEI) Steel Wire supplied intermediate products from Tochigi to Taiwan. In Tochigi plant, new drawing and plating lines are now under construction with 450-500 million yen capex.