Shinsho Corp Targets Overseas Sales at 100B Yen in F2020

Shinsho Corporation, Kobe Steel’s trading subsidiary, plans to increase its overseas steel sales by 1.8 times to 100 billion yen until fiscal 2020 compared with fiscal 2010 ending in March 2011. The overseas sales rate will rise by 15 percentage points to 40%. The firm builds up steel wire processing bases in the U.S.A. and Thailand while expands sales of Kobe Steel’s high tensile steel sheet. Shinsho Corp eyes business cooperation and trade increase with overseas steel makers in partnership with Kobe Steel mainly in emerging countries.

Shinsho Corp’s steel division targets overseas sales at 55 billion yen in fiscal 2010, up from 45 billion yen in fiscal 2009. The mid-term target is 85 billion yen for fiscal 2015. Overseas sales ratio will rise to 25% in fiscal 2010 from 20% in fiscal 2009 while 30% in fiscal 2015 and 40% in fiscal 2020.

As for steel wire processing business, GBP, a subsidiary in the U.S.A., is in full operation at 7,000 tonnes per month. The subsidiary plans expansion of warehouses and renewal of controlling system. KCH and MKCL, subsidiaries in Thailand, are also in steady operations. Thai subsidiaries plan capacity expansions to meet demand growth from automobile market. In China, the subsidiary’s production ratio is recovering to 90%.

Kobe Steel plans to enhance production base of high tensile steel sheet with US Steel in the U.S.A. Shinsho Corp develops new customers. As for steel plate, Shinsho Corp follow the demand growth from construction machine makers.