Fusoh Kokan Establishes Thai Subsidiary

Japanese major seamless steel tube dealer, Fusoh Kokan established wholly owned processing subsidiary in Thailand to meet growing demand for local purchase of construction machinery parts. Fusoh Kokan invests around 230 million yen to establish the supply base to provide cut tube material and processed parts for local manufacturing sites of Japanese construction machinery makers. The subsidiary, Fusoh Tube Parts Thailand was established in Chonburi, Thailand on June 9. The firm introduces cutting machine, lathe and NC lathe in the plant, which is scheduled to be complete in February 2011. The firm plans 30 million yen sales per month with 30% gross margin rate. The firm plans to increase the capacity aiming to manufacture coated construction machinery parts.Fusoh Kokan exports the tube material to overseas manufacturing sites of Japanese construction machinery makers. However, the firm establishes the subsidiary in Thailand and supplies the parts in Thailand, Indonesia and India to meet the demand for local purchase.