Nippon Steel & Sumikin Welding Eyes New Offshore Plant

Nippon Steel & Sumikin Welding tires to launch offshore production base mainly in emerging countries other than existing plant in Thailand. The firm expands the offshore sales with the parent companies’ support. The firm tries to improve the competitiveness through across the board efforts including better quality for domestic production.

The plant in Thailand, which started the solid wire making operation in January 2010, operates at around 80% of the capacity. The plant eyes gradual capacity expansion depending on the demand condition while the firm tries to improve the operation base including development of local human resources.

The firm decided to expand the offshore operation when the domestic demand couldn’t recover peak level and the export is limited to high valued products including seamless flax cored wire. The firm tries to find optimum offshore production base to utilize the advantage.

The firm started the integrated operation of 2 plants in Chiba since July. The firm tries to improve the competitiveness by improving productivity, quality control and procurement. The firm realized better yield at Narashino plant in Chiba by renewing old line for seamless flax cored wire as the new line.

The firm tries to secure recurring profit with 5% higher sales at 25 billion yen for the full year through March 2011 from previous year while the firm posted marginal recurring profit with 9% higher sales at 12.7 billion yen of sales in the first half year from same period of previous year.