Nisshin Steel Raises Capacity of Ningbo Baoxin in China

Nisshin Steel announced on Thursday the firm introduces a bright annealing (BA) line and a skin pass roll line at Ningbo Baoxin Stainless Steel, a joint company between Nisshin Steel and Bao Steel, in order to meet Chinese market demand for high quality products. The facilities are expected to start operation within 2012. Ningbo Baoxin’s capacity will double to 120,000 tonnes per year for BA products and increase by 10% to 660,000 tonnes for cold rolled products.

This capacity expansion is implemented by Ningbo Baoxin’s capital increase by 340 million yuan (about 4.5 billion yen). The parent companies completed the payment in August. After the capital increase, controlling share became 20% for Nisshin Steel, 7% for Mitsui Corporation, 7% for Hanwa Corporation, 54% for Bao Steel and 12% for the other Chinese company. Nisshin Steel accepted 200 million yen payment.

Nisshin Steel aims to deepen cooperative relationship with Bao Steel for stainless steel business and enhance superiority of Ningbo Baoxin in Chinese stainless market through this expansion. Ningbo Baoxin was established as a cold rolled stainless steel plant in 1996. The plant started operation in 1998 with initial capacity at 80,000 tonnes per year. The firm posted profit before tax at 24 million yuan (about 3.2 billion yen) in 2009.