Mitsui & Co. to Expand Offshore Steel Service Center Network

Mitsui & Co.’s iron and steel products business unit expands offshore service center network including expansion of existing sites and new investment. The unit tries to optimize the 60 operations in 10 countries by consolidating the headquarters function into single division specialized to service center controlling in Tokyo. The headquarters launches investment and marketing strategy including tie-up with offshore steel makers and partners to cover growing demand in emerging countries.

The headquarters supports the offshore service center operations by backup with legal, financial and human resources. Under the support and strategy by headquarters, the operations can focus on the daily works. The unit tries to optimize the resource and share advanced knowhow among the operations through the headquarters function while the unit controlled the centers in separated divisions including automotive and appliances marketing divisions.

The unit expanded the service center network speedy mainly in joint venture with local partners in order to meet growing demand from transplants of Japanese manufacturers. The unit tries to expand the cooperation with local partners when local manufacturers shift the function from traditional export base to supply base for local market. The unit decided to consolidate the service center headquarters function into single division in order to follow the move.

The unit tries to expand service center business in emerging countries. The unit plans to build new service center in Chennai and Mumbai after the unit agreed with Ruchi Group in April to establish joint service center. The unit considers expansion of processing capacity at joint service centers with Baoshan Iron and Steel in Guangdong. The unit eyes another tie-up with Chinese makers including Anshan Iron and Steel and Wuhan Iron and Steel in automotive stamping business and other processing.

The unit established 50/50 joint venture with Nucor, NuMit in April through the subsidiary, Steel Technologies. The venture tries to expand the service center business in North America. The unit also plans to build new service center in Mexico.

Mitsui & Co. encourages technical support to offshore centers from Mitsui Bussan Coil Center in Japan to meet higher demand from transplants of Japanese manufacturers. The unit tries to expand the business by utilizing the all resources to follow the growing demand.