Sumitomo Metals Increases Umbilical Tube Capacity by 1.3 Times to 1,500T/Y

Sumitomo Metal Industries increased production capacity of high grade special steel tube, called umbilical tube, by 1.3 times to 1,500 tonnes per year in order to meet strong demand. The firm cooperates with Acute, American steel tube maker, to start sales of coiled umbilical tube for delivery cost reduction and to develop high tensile tube.

Umbilical lines are used in deep sea at around 500 meters depth to develop offshore oil well and to connect main platform with undersea oil well by hydraulic pipe, chemical pipe and electric cable. Umbilical tube is used inside umbilical line. The global demand is expected to grow by 80% in next 3 years along deepening of offshore oil and gas wells.

Sumitomo Metals adopts super duplex stainless steel, DP3W, which contains 25%-chrome, 7%-nickel, 3%-molybdenum and 2%-tungsten. The alloy represents high performance of embrittlement and corrosion resistance.

Sumitomo Metals sells the products for Nexans, a fabricator in Norway. The sales share of Sumitomo Metals is 10-15% in the world while Sandvik holds 85-90% share.

Sumitomo Metals recently accepted umbilical tube order at 1,000 tonnes from Nexans for the Gulf of Mexico. The firm aims to increase the order receipts by over 4 times to 1,300 tonnes in fiscal 2010 ending in March 2011 from fiscal 2009 and expects more growth in and after fiscal 2011. The firm produces umbilical tube from billet through extruding and cold rolling processes in Special Tube Works, Hyogo, Japan.