Mitsubishi Steel Mfg to Raise Overseas Sales Ratio to 40% for 3 Years

Mitsubishi Steel Mfg aims to raise overseas sales ratio to around 40% from present 25% in next 3 years. The firm plans capacity expansion at overseas production bases to manufacture wind spring for automobile in China and precision casting products in Thailand. The firm also considers new businesses in emerging countries such as India. The firm enhances local supply system including alliances with local enterprises and follows the offshore market growth.

The firm adds a productive line to an existent line at a wind spring plant in China to follow car output growth in the country. The new line will enter commercial production in September 2011. The full output will be 500,000 pieces per month. In Thailand, the firm expands production capacity of a precision casting plant largely. The order receipt is rapidly increasing for nozzle vane applied to turbo charger of diesel engine.

In Indonesia, Mitsubishi Steel Mfg serves technical support to PT Jatim Taman Steel Mfg, a local electric furnace steel maker, to produce semi-finished steel for spring. Jatim supplies semi-finished steel to India Spring, a local major spring maker.

In India, Mitsubishi Steel Mfg also serves technical support to a local automotive suspension spring maker. Mitsubishi Steel Mfg doesn’t have concrete investment plans in India at present but the technical support relationship may become a foothold in the future.

In North America, the firm integrated 2 automotive wind spring plants in June 2010. The firm advances improvement of productivity and profitability of the site.

Mr. Nobumichi Ohno, president of Mitsubishi Steel Mfg, said the firm establishes a strategic plan focusing on overseas market. The firm builds up correspondence for overseas users and embraces local demand mainly in emerging countries.