Nisshin Steel to Expand ZAM Output Capacity by 20%

Nisshin Steel increases the output capacity of highly corrosion resistant coated steel, ZAM by 20% to 60,000 tonnes per month through the revamping No.3 continuous galvanizing line at Ichikawa plant for around 1.5 billion yen, announced on Thursday. The firm launches the production of ZAM at the plant in 2011 to increase the sales in the eastern Japan. The firm also eyes further expansion to add the new line in Toyo plant or Sakai plant to increase the capacity to 100,000 tonnes.

Nisshin Steel launched ZAM, zinc-aluminium-magnesium alloy coated steel sheet in 2000 and the monthly sales are slightly more than 50,000 tonne in past months while the averaged sales was 49,000 tonnes per month in fiscal 2008 ended March 2009. The application is not only for construction but also civil engineering, agriculture, automobile and electronics.

At first, Nisshin Steel manufactures ZAM at only Toyo plant. Due to the growing demand, the firm converted No.1 continuous galvanizing line of Sakai works into ZAM specialized line in 2002 and increased the capacity to 50,000 tonnes per month. The firm decided to increase the capacity to 60,000 tonnes starting the production in the eastern Japan for the first time.

The firm expects the demand of ZAM increases more for new applications including energy, environmental related and overseas market. The firm plans to add the line at Toyo or Sakai plant to increase the monthly production to 100,000 tonnes and eyes overseas production.